ECB’s Philip Lane Warns Oil Shock Could Force Further Rate Hikes

The post ECB Philip Lane: Oil shock to require rate hikes appeared on BitcoinEthereumNews.com. The European Central Bank (ECB) Chief Economist Philip Lane crossed the wires, saying that the energy shock caused by the Iran war will require a restrictive policy at a conference in London. Lane said that “a mid-size but not-too-persistent overshoot could warrant some measured adjustment,” adding that the response has to be “appropriately forceful or persistent” on Lane reaffirmed the ECB’s line that “a mid-size but not-too-persistent overshoot could warrant some measured adjustment” while the response had to be “appropriately forceful or persistent” would require a firmer or longer-lasting policy reaction. EUR/USD reaction on the headline The EUR/USD bounced off around the 1.1700 figure, past the 100-day Simple Moving Average (SMA) of 1.1708, which could open the door for further gains. Up next is the 20-day SMA at 1.1730. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is

The post ECB’s Rehn: Monetary policy should not be based on oil prices alone appeared on BitcoinEthereumNews.com. European Central Bank (ECB) official and Finnish Central Bank Governor Olli Rehn said during European trading hours on Wednesday that higher oil prices should not be the only factor to direct monetary policy decisions. Rehn added that the central bank needs to assess the scope of energy shocks. Additional comments ECB needs to assess whether the energy shock spreads to inflation expectations, wages and core inflation. It’s worth preparing for a protracted conflict in the Strait of Hormuz. If events turned out differently, it would be easier to adjust. Key factors are the strength and duration of the energy shock and any broader pass-through into inflation. The energy shock is not, at least so far, quite comparable to the 2022 shock. The ECB is committed to keeping inflation stable around 2% over the medium term. Market reaction There seems to be no immediate impact of ECB R

The post ECB to hike interest rates in June – Reuters poll appeared on BitcoinEthereumNews.com. According to a Reuters poll, the European Central Bank (ECB) will hike the deposit rate by 25 basis points (bps) to 2.25% in June, said 59 of 70 economists (vs 44 of 85 in April survey). The poll also showed the ECB to hike the deposit rate at least twice in 2026, said 37 of 70 economists (vs. 34 of 85 in April poll). ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone nationa

The post ECB’s Muller: Fast Hormuz solution needed to hold in June appeared on BitcoinEthereumNews.com. European Central Bank (ECB) policymaker Madis Muller said on Wednesday that a fast resolution in the Strait of hormuz is needed for the ECB to hold rates unchanged in June. Regarding the economic outlook, Muller noted that the Eurozone has not fallen into stagflation and added that he doesn’t see any resons to talk about recession. Market reaction EUR/USD stays under bearish pressure following these comments and was last seen losing 0.3% on the day at 1.1705. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice v

The post Denis Beau warns dollar stablecoins threaten Europe appeared on BitcoinEthereumNews.com. Denis Beau urged immediate private-sector mobilisation to build euro stablecoins, breaking publicly with ECB president Christine Lagarde’s slower approach. Summary Banque de France deputy governor Denis Beau called for all relevant European players, public and private, to mobilise now to develop euro-based tokenised money. Beau’s position conflicts with ECB president Christine Lagarde, who favours a central bank digital euro targeted for launch around 2029. Dollar-pegged stablecoins account for 98% of the total stablecoin market, raising fears of digital dollarisation across European payment infrastructure. Denis Beau, deputy governor of the Banque de France, called on May 12 for a “mobilization of all relevant European players, public and private,” to develop euro-based tokenised money to counter the dominance of dollar-pegged stablecoins. His position puts him at odds with ECB president

Denis Beau urged immediate private-sector mobilisation to build euro stablecoins, breaking publicly with ECB president Christine Lagarde’s slower approach. Denis Beau, deputy governor of the Banque de France, called on May 12 for a “mobilization of all relevant European players,…

The post BoC: Patience on hikes despite oil shock – TD Securities appeared on BitcoinEthereumNews.com. TD Securities strategists expect the Bank of Canada (BoC) to hold its policy rate at 2.25% through 2026 before returning to a 2.75% neutral level in 2027 via 25 bp hikes in January and March. They see higher Oil prices from US–Iran tensions as an inflation shock but argue well-anchored expectations and muted core inflation allow the Bank to look through stronger headline Consumer Price Index (CPI). BoC seen on extended hold then hiking “We look for the Bank of Canada to stay on hold at 2.25% through 2026 before a return to neutral (2.75%) next year, with 25bp hikes in January and March. Higher oil prices resulting from US strikes on Iranian and subsequent threats to global crude supply have introduced a material shock for inflation, but we believe the Bank can remain patient as it waits for more clarity on the geopolitical outlook and spillovers to domestic CPI. We look for inflation

A potential ECB rate hike could strengthen the euro, impacting global markets and speculative assets, while geopolitical tensions add uncertainty. The post ECB’s Kocher signals potential rate hike if inflation outlook worsens appeared first on Crypto Briefing.