Latest News

ECB’s Nagel calls for letting long-term rates rise too

ECB’s Nagel calls for letting long-term rates rise too By Reuters

Breaking News


Economy 12 minutes ago (Nov 10, 2022 19:12)

© Reuters. FILE PHOTO: A view of signage outside the European Central Bank (ECB) building in Frankfurt, Germany October 27, 2022. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) – The European Central Bank should let long-term borrowing costs rise too, as it increases short-term interest rates to fight runaway prices in the euro zone, ECB policymaker Joachim Nagel said on Thursday.

The ECB has been raising its policy rates at record speed but it is still buying bonds to replenish its 5-trillion-euro ($5.07 trillion) stimulus portfolio, which has a dampening impact on long-term bond yields.

Nagel’s comments likely represent a call on the ECB to start unwinding those bond holdings – legacy of a decade spent trying to boost inflation when it was too low – even before its last rate hike, which the market expects in the summer.

“I find it inconsistent to move short-end rates in one direction and longer-end rates in the other direction,” Nagel said. “When you have two policy normalisation tools at hand, it doesn’t make sense to use just one of them.”

ECB vice-president Luis de Guindos said earlier this week that this so-called quantitative tightening may start while rates are still being increased.

The ECB said it would begin discussing how it reinvests proceeds from bonds that mature at its Dec. 15 meeting.

($1 = 0.9865 euros)

ECB’s Nagel calls for letting long-term rates rise too

FTX looks for $9.4 billion in rescue funds from investors, rivals -sourceBy Reuters – Nov 10, 2022

By Angus Berwick and Anirban Sen (Reuters) – FTX is scrambling to raise about $9.4 billion from investors and rivals, a source said on Thursday, as Chief Executive Sam…

Behind FTX’s fall, battling billionaires and a failed bid to save cryptoBy Reuters – Nov 10, 2022

(This story contains language some readers may find offensive, paragraph 2) By Angus Berwick and Tom Wilson (Reuters) – On Tuesday morning, Sam Bankman-Fried, owner of…

Fed’s Mester: Bank of England navigated stressful chapter wellBy Reuters – Nov 10, 2022

(Reuters) – Federal Reserve Bank of Cleveland President Loretta Mester said on Thursday the Bank of England did well navigating a recent round of market stress.
In restarting…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News