Monday, February 6, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business

ECB to end stimulus plan in prelude to rate hikes

AFPbyAFP
June 6, 2022, 7:05 pm
in Business, Economy & Trade
Reading Time: 3 mins read
A A
Share on FacebookShare on TwitterShare on Email

FRANKFURT, Germany—The European Central Bank is set to draw a line under its massive bond-buying stimulus program at a meeting in Amsterdam on Thursday, as inflation in the eurozone soars to all-time highs.

The decision, already extensively flagged in advance by senior policymakers, is then expected to pave the way for the ECB to raise its interest rates for the first time in over a decade in the weeks that follow. 

Eurozone consumer prices rose by 8.1 percent year-on-year in May, a record since the single currency was launched and well above the ECB’s own target of two percent.

The surge, driven by the war in Ukraine and the consequent rise in energy prices, has boosted calls for the ECB to move more quickly to end its expansionary monetary policy. 

The ECB is lagging behind the central banks in Britain and the United States, which have moved aggressively to try to stamp out inflation.

ADVERTISEMENT

But the ECB first plans to discontinue asset purchases under its crisis-era stimulus program before proceeding to actual rate hikes. 

The so-called asset purchase program, or APP, is the last in a series of debt-purchasing measures worth a total of around five trillion euros ($5.4 trillion) deployed by the ECB since 2014.

ECB chief Christine Lagarde suggested recently that the APP would “end very early in the third quarter.”

For ING’s head of macro, Carsten Brzeski, the comments by Lagarde, a former French finance minister, were “remarkable” in that she has taken the unusual step of mapping out a timetable for ECB policy into the second half of the year. AFP

Lagarde said that rates were set to “lift off” at the ECB’s meeting in July—the first upward move in borrowing costs in over a decade–and the euro’s guardian would then close the era of negative interest rates by the end of September.

Of the ECB’s three main interest rates, the so-called deposit rate—which is normally the interest commercial banks would receive for parking their cash with the ECB overnight—has been negative since 2014.

A negative rate effectively means that commercial banks have to pay the ECB to park their cash, a move introduced by the then president Mario Draghi to keep cash circulating in the eurozone financial system at a time of looming deflation.

For Brzeski, the ECB “has clearly passed the stage of discussing whether and even when policy rates should be increased” and the “only discussion” for the coming weeks was how big the first step would be. 

A number of governing council members have openly discussed the possibility of a 50-basis-point, or half-point, hike to lift ECB interest rates out of negative territory in one go.

Before the most recent eurozone inflation data was released, the head of the Dutch central bank, Klaas Knot, said that such a move was “clearly not off the table.”

On the other side of the Atlantic, the US Federal Reserve already raised rates by half-a-percentage point last month, and some of its policymakers are arguing for more big increases.

But observers have urged the ECB to proceed more cautiously.

Smaller steps of 25 basis points, or a quarter of a percentage point, were the “benchmark pace” for the move out of negative interest rates, the ECB’s chief economist Philip Lane said at the end of May.

Tags: European Central BankInflationinterest ratesstimulus program
ADVERTISEMENT
AFP

AFP

Related Posts

Ayala-led group shows interest in NAIA modernization

byJenniffer B. Austria
February 5, 2023, 7:35 pm
0
8
Ayala sells all shares in BPO subsidiary HCX

Conglomerate Ayala Corp. said it remains interested in the Ninoy Aquino International Airport modernization project after the government revived offers...

Read more

Megawide unit spending P5b to build second transport terminal in Parañaque

byDarwin G. Amojelar
February 5, 2023, 7:30 pm
0
8
Megawide raises P4B after offering preferred shares

MWM Terminals Inc., a subsidiary of Megawide Construction Corp., is spending P5 billion to build a new transport terminal near...

Read more

BPI’s income soared 66% to P39.6b in 2022

byJulito G. Rada
February 5, 2023, 7:25 pm
0
8
BPI’s income increased 1.8% to P17.5b in 1st three quarters

Bank of the Philippine Islands, the third-largest lender in terms of assets, posted a record net income of P39.6 billion...

Read more

Meralco prepares to secure 480-MW supply for dry months

byAlena Mae S. Flores
February 5, 2023, 7:20 pm
0
8
Meralco announces P0.31 per kWh hike in December rates

Power retailer Manila Electric Co. said over the weekend it expects to conclude the competitive selection process for the combined...

Read more

GSIS non-life insurance premiums climbed to a record-breaking P6.8b in 2022

byManila Standard
February 5, 2023, 7:15 pm
0
8
GSIS rents out  housing units;  lessee given option to buy

State-run Government Service Insurance System reported a record-breaking P6.8-billion gross premiums written in its non-life insurance business in 2022, the...

Read more

LandBank’s profit grew 38% to P30.1b last year

byJulito G. Rada
February 5, 2023, 7:10 pm
0
8
LandBank lends P233b to agriculture

State-run Land Bank of the Philippines posted a 38.2-percent increase in net income in 2022 to P30.1 billion from P21.7...

Read more

Print Edition

View More

Recent Posts

  • Sneakers for Makati : AB4.0
  • Onion, garlic hoarders face raps
  • PBBM assures OFWs of gov’t support for their families
  • US shoots down China ‘spy balloon’ off Atlantic
  • Rollback forecast: Diesel P3.10/liter, gas P2.40/liter
  • UN forensic expert to help probe ’wrongful deaths’
  • Ex-trade minister Roberto ‘Bobby’ Ongpin, 86
  • Munti rolls out BookMobile for City schools

Advertisement

Latest News

UN forensic expert to help probe ’wrongful deaths’

byRey E. Requejoand1 others
February 6, 2023, 1:00 am
0
8
UN validates record Arctic temperature

Justice Secretary Jesus Crispin Remulla on Sunday said the visit of forensics expert Dr. Morris Tidball-Binz to the Philippines this...

Read more

Ex-trade minister Roberto ‘Bobby’ Ongpin, 86

byJenniffer B. Austria
February 6, 2023, 12:50 am
0
8
Lowest COVID cases logged in 1,052 days

Business tycoon and former Trade Minister Roberto “Bobby” Ongpin passed away Saturday night. He was 86. Roberto “Bobby” Ongpin Ongpin’s...

Read more

Munti rolls out BookMobile for City schools

byManila Standard
February 6, 2023, 12:46 am
0
8
Munti rolls out BookMobile for City schools

The City of Muntinlupa is bringing the joy of reading and discovery right to the students in schools. The Muntinlupa...

Read more

Munti trains CG employees to combat fake news

byManila Standard
February 6, 2023, 12:44 am
0
8
Munti trains CG employees to combat fake news

The City of Muntinlupa is doubling down on fake news by teaching government employees to fight disinformation. The Muntinlupa Public...

Read more

CPP warns vs. proxy US-China war

byMacon Ramos-Araneta
February 6, 2023, 12:40 am
0
8
Vax wastage, infection surge feared in Odette-hit areas

The Communist Party of the Philippines on Sunday warned the Philippines can get caught between the US and China should...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App