The situation has started to take on aspects of a currency crisis, with politicians and ECB officials providing a non-stop stream of public comment, with theories, excuses, and bold predictions for what lies ahead for the currency,
Quotes about ecb (16 Quotes)
Politicians, industry groups and research bodies are all uniting to call on the ECB for policy action.
These are the sort of numbers that should give extra leverage to the ECB (European Central Bank) to keep pressing rates higher, but we still believe the benign inflation picture will force them to adopt a softly, softly approach to tightening this year.
The agreement is lower than expected and it's good news for Germany and for the euro zone because the ECB will have one reason less to raise interest rates. The whole package entails a total rise of 5.1 percent over 24 months, so for German standards that is a really good agreement.
The more hawkish rhetoric we've had from the ECB and talk of the next move in interest rates being up is protecting the euro a little. The problem the market has is that it's tougher talk, but action is still some way away.
We still hold firm to the belief that the euro will fall to 80 cents, ... At that level the ECB is most likely to intervene.
We still think the tough talk from the ECB will not amount to outright action.
The ECB has to be cautious since risks probably outweigh benefits. So I expect hawkish talk but cautious action,
I don't think the ECB should go out of its way to boost the currency either verbally or through action. Their mandate is very clear, and that is to maintain price stability. To the extent that price stability is in danger they have already acted. There is no point in deviating from that strategy.
Hiring intentions seem to have gone up a little bit and confidence is edging up. It's right to assume that the ECB will raise rates in March.
The question is have they all on the ECB gone hawkish Or is there any argument on the ECB of whether we should not move If there are doves left, we are not hearing them.
We believe the hawkish hints coming from the ECB and the potential time constraints posed by the prospect of softer fundamentals further ahead mean the race is on to get rates up as soon as possible.
Duisenberg gave the strongest possible hint that the ECB is on the verge of raising its refinancing rate. The comments offer a clear pointer to tightening action.
The Fed and the ECB view monetary data completely differently. The emphasis the ECB places on this analysis is a little excessive. If we were in charge of interest- rate policy, we would keep them on hold.
All of this adds ammunition to the argument that the ECB will tighten (monetary policy).
If you assume that the markets are effectively pricing in 2.75 percent rates by the end of the third quarter and have been doing that really since the end of last year, there is nothing that they are hearing from ECB members is really altering that perception.