Free Trial
KRW

1 Month USD/KRW Dips Back Below 1300

JGB TECHS

(U2) Off Lows, But Still Fragile

AUSSIE BONDS

Firmer Overnight

AUSSIE 10-YEAR TECHS

(U2) More Stable But Still Fragile

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI SOURCES:ECB To Hold Course For Tightening Amid Uncertainty

The ECB will continue to move towards withdrawing stimulus in response to inflation at its meeting next week.

True

The European Central Bank will reaffirm its commitment to removing pandemic stimulus at its meeting next week, moving towards phasing out bond purchases ahead of possible rate rises from September this year, but it will also stress its ability to change course if necessary at a time of extreme uncertainty, Eurosystem sources told MNI.

An end to net bond purchases and the return of the deposit rate to around zero from the current -0.5% would normalise monetary policy in response to a spike in inflation, without, officials calculate, tightening financial conditions across the eurozone. The ECB could next Thursday say it will conclude its Asset Purchase Programme by as soon as June, opening the way to a possible hike in September, but officials note that many things could go wrong, as war rages in Ukraine, the Covid pandemic lingers, and France faces a possible presidential run-off vote featuring a far-right candidate with an outside chance of victory.

Keep reading...Show less
809 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The European Central Bank will reaffirm its commitment to removing pandemic stimulus at its meeting next week, moving towards phasing out bond purchases ahead of possible rate rises from September this year, but it will also stress its ability to change course if necessary at a time of extreme uncertainty, Eurosystem sources told MNI.

An end to net bond purchases and the return of the deposit rate to around zero from the current -0.5% would normalise monetary policy in response to a spike in inflation, without, officials calculate, tightening financial conditions across the eurozone. The ECB could next Thursday say it will conclude its Asset Purchase Programme by as soon as June, opening the way to a possible hike in September, but officials note that many things could go wrong, as war rages in Ukraine, the Covid pandemic lingers, and France faces a possible presidential run-off vote featuring a far-right candidate with an outside chance of victory.

Keep reading...Show less