"I am very concerned about the European economy," European Central Bank policymaker Mário Centeno told CNBC's "Squawk Box Europe" on Friday. The ECB on Thursday took down its gross domestic product expectations for the euro area.
The ECB has cut by 25bp, and Europe is awash with the narrative of fiscal expansion leaving less room (or need) for monetary stimulus.
ECB, rate cut
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VIEW ECB cuts rates again, euro rallies
Massive German fiscal changes unlikely to stop ECB rate cuts
The “whatever it takes” moment sent Bund yields immediately higher on the prospect of much higher German public borrowing. The prospects of higher German growth and borrowing will have implications for the rest of Europe and policy at the European Central Bank,
ECB cuts key interest rate to 2.5% amid 'risk, uncertainty'
The rate cut comes as the ECB seeks to alleviate pressure on consumers and businesses amid sluggish economic growth in Europe, and the threat of trade tensions with the US.
Inflation in Europe eased to an annual 2.4% in February, supporting the case for another interest rate cut from the European Central Bank — but leaving open how far the central bank will go in lowering borrowing costs for an economy that’s still struggling to show robust growth.
Inflation in Europe eased to 2.4% in February, supporting the case for another interest rate cut from the European Central Bank but leaving open how far the central bank will go in lowering borrowing costs.
The increasingly strained relationship between the US and Europe is strengthening the case for the growth of a homegrown European rating agency. Scope Ratings, based in Germany, is poised to take a bigger role in the bond market as the only European rating agency so far approved for use by the European Central Bank.
FRANKFURT — The European Central Bank cut its key deposit rate by 25 basis points to 2.50 percent, but its boss, Christine Lagarde, said the Bank may pause cuts as growing uncertainty clouds the economic outlook.
2don MSN
"I am very concerned about the European economy," European Central Bank policymaker Mário Centeno told CNBC's "Squawk Box Europe" on Friday. The ECB on Thursday took down its gross domestic product expectations for the euro area.
EUROPEAN shares pared declines to close flat on Thursday, after the European Central Bank’s interest rate cut boosted bank stocks, offsetting pressures from rising long-term bond yields. Read more at The Business Times.
A tectonic shift in German fiscal policy has compounded uncertainty for traders trying to bet on how fast the European Central Bank will cut rates for the rest of the year, with a change to the bank's guidance on Thursday reinforcing that.
The combination of continued growth concerns in the US and the fiscal/defense initiatives in Europe saw the dollar fall every day last week.
The euro extended its gains and was last up 0.28% at $1.082, having traded at $1.0797 earlier, while government bond yields edged up. Germany's two-year bond yield traded at 2.25%, versus 2.22% just before the decision, while Italian bond yields edged up. European stocks were last down 0.6%.
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