Created
: 2024.05.27
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
ECB's Lane: There is enough in what we see to start interest rate cuts
World FX news
Breaking news
ECB's Lane: There is enough in what we see to start interest rate cuts
New
2024.05.27 13:35
2024.05.27 13:35
2024.05.27 13:35
In an interview with the Financial Times on Monday, European Central Bank (ECB) Chief Economist Phillip Lane said that "there is enough in what we see to start interest rate cuts."
Additional quotes
I think we have been successful in getting inflation down in a timely manner.
But policy needs to remain in restrictive territory.
Things will be bumpy and things will be gradual.
But within the zone of restrictiveness we can move down somewhat.
If inflation visibly approaches the target next year, then we can make sure rates come down further.
Market reaction
EUR/USD is unmoved on the dovish comments. trading flat at around 1.0850, as of writing.
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 national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
Last updated
: 2024.05.27
Related articles
EUR/JPY hovers near multi-year highs 171.50, Japan's intervention fears intensify
44 minutes agoEUR/USD: Markets are sidelining ahead of a major event - OCBC
2024.06.26 20:42USD/CNH: RMB depreciation continues - OCBC
2024.06.26 20:32US Dollar stretches higher with hawkish Fed scaremongering markets
2024.06.26 20:30Breaking: Japanese Yen hits multi-decade lows against US Dollar, eyes on BoJ
2024.06.26 20:19USD/CAD recovers at Fed rate-setters' reluctance to endorse interest-rate cuts
2024.06.26 20:12
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Silver Price Analysis: Declining in a falling channel
Silver (XAG/USD) looks like it has started to form a descending channel on the 4-hour chart and the evidence is building to argue that it is probably in a short-term downtrend now too.
New
2024.06.26 22:33EUR/JPY hovers near multi-year highs 171.50, Japan's intervention fears intensify
The EUR/JPY trades close to multi-year highs around 171.50 in Wednesday's American session.
New
2024.06.26 22:18EUR/USD: Markets are sidelining ahead of a major event - OCBC
The main focus for the Euro (EUR) is on French elections in the short term.
New
2024.06.26 20:42USD/CNH: RMB depreciation continues - OCBC
The recent USD/CNY fixings suggest a measured pace of RMB depreciation, OCBC analysts Frances Cheung and Christopher Wong note.
New
2024.06.26 20:32US Dollar stretches higher with hawkish Fed scaremongering markets
The US Dollar (USD) trades stronger on Wednesday for the second day in a row with some help from US Federal Reserve (Fed) officials, who seem to have turned more hawkish.
New
2024.06.26 20:30Breaking: Japanese Yen hits multi-decade lows against US Dollar, eyes on BoJ
The Japanese Yen (JPY) declined to its weakest level since 1990 against the US Dollar on Wednesday, with USD/JPY touching 160.40 during the European trading hours.
New
2024.06.26 20:19USD/CAD recovers at Fed rate-setters' reluctance to endorse interest-rate cuts
USD/CAD edges higher on Wednesday, trading in the 1.3680s as the US Dollar (USD) firms up on commentary from several Federal Reserve (Fed) rate-setters, that overall suggests the US central bank is reluctant to cut its main interest rate, the Fed Funds rate, due to insufficient progress being made on lowering inflation.
New
2024.06.26 20:12AUD/USD hits resistance near 0.6690 after rally inspired by hot Aussie Inflation
The AUD/USD pair surrenders some of its intraday gains after reaching to near 0.6690 in Wednesday's European session.
New
2024.06.26 19:49EUR: French election and US PCE to guide the EUR/USD - ING
EUR/USD is trading close to 1.07 following a soft session for risk sentiment on Tuesday, ING's analyst Francesco Pesole notes.
New
2024.06.26 19:39ECB's Panetta: ECB will pursue normalization gradually and smoothly
European Central Bank (ECB) executive board member Fabio Panetta said on Wednesday that the current economic environment in the Eurozone is consistent with a normalization of the monetary stance, per Reuters.
New
2024.06.26 19:31Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
