ECB Chief Says Uncertainty Exceptionally High

RTTNews | 39 days ago
ECB Chief Says Uncertainty Exceptionally High

(RTTNews) - European Central Bank President Christine Lagarde said the level of uncertainty is exceptionally high and maintaining stability has become difficult.

"The level of uncertainty we are facing is exceptionally high," she said at a conference organized by the Institute for Monetary and Financial Stability at Goethe University Frankfurt on Wednesday.

The central bank chief noted that uncertainties surrounding trade policy and geopolitical situations are too high. She said policymakers are facing a new two-sided shocks, mainly linked to trade and defense, as well as climate change, which can amplify or counteract the existing forces.

"Maintaining stability in a new era will be a formidable task," said Lagarde.

"It will require an absolute commitment to our inflation target, the ability to parse which types of shocks will require a monetary reaction and the agility to react appropriately," the banker added.

Lagarde observed that central bankers need to show agility to adjust their stance and their tools to changing circumstances. Moreover, they will need intellectual curiosity to challenge established principles and conventional wisdom, the banker noted.

At the March rate-setting meeting, the ECB had cut its key interest rates for the fifth policy session in a row. The bank repeatedly said that it will not pre-commit to a particular rate path.

read more
ECB Cuts Interest Rates By 25 Bps Again Despite 'Exceptional Uncertainty'

ECB Cuts Interest Rates By 25 Bps Again Despite 'Exceptional Uncertainty'

The European Central Bank slashed its key interest rates by a quarter basis point on Thursday, as expected, as policymakers assessed that disinflation remains on track but acknowledged that the significant uncertainty due to the escalation in the tariff war is going to hurt the Eurozone economic outlook.
RTTNews | 3 days ago
Eurozone Inflation Eases As Estimated

Eurozone Inflation Eases As Estimated

Eurozone inflation slowed in March, as initially estimated, as energy prices declined for the first time in four months and services inflation softened for the third straight month. The harmonized index of consumer prices climbed 2.2 percent on a yearly basis in March, slightly slower than the 2.3 percent rise in February, final data from Eurostat showed on Wednesday.
RTTNews | 4 days ago
German Economic Sentiment Plunges On Trade Tariff Concerns

German Economic Sentiment Plunges On Trade Tariff Concerns

German economic sentiment logged its sharpest fall since Russia invaded Ukraine in early 2022, as the changes in the US trade policy added global uncertainty, a closely watched survey published by think tank ZEW showed Tuesday. The ZEW Indicator of Economic Sentiment declined sharply to -14.0 in April from +51.6 in March. The indicator turned negative for the first time since October 2023 and als
RTTNews | 5 days ago
Eurozone Industrial Production Growth Accelerates

Eurozone Industrial Production Growth Accelerates

Eurozone industrial output grew at a faster pace in February driven by the rebound in production of capital and non-durable consumer goods, data from Eurostat showed on Tuesday. Industrial output climbed 1.1 percent month-on-month in February, which was faster than the 0.6 percent growth logged in January and also better than economists' forecast of 0.1 percent.
RTTNews | 5 days ago
German Exports Rise Ahead Of Trump's Reciprocal Tariffs; Industrial Output Falls

German Exports Rise Ahead Of Trump's Reciprocal Tariffs; Industrial Output Falls

Germany's exports grew the most in four months in February as U.S. importers frontloaded orders ahead of the imposition of new tariffs by the Trump administration, while industrial production declined more than expected in February indicating more challenges ahead for the economy. Exports grew 1.8 percent month-on-month in February, following stagnation in January, Destatis reported.
RTTNews | 13 days ago
Eurozone Sentix Investor Confidence Weakest Since 2023

Eurozone Sentix Investor Confidence Weakest Since 2023

Euro area investor confidence deteriorated to the lowest level in one-and-a-half years in April as expectations logged the second sharpest fall on record, results of the monthly survey by the behavioral research institute Sentix showed on Monday. The investor confidence index fell more-than-expected to -19.5 in April from -2.9 in March. The decline was much severe than the expected slump to -8.9.
RTTNews | 13 days ago
Eurozone Retail Sales Rise For First Time In 5 Months

Eurozone Retail Sales Rise For First Time In 5 Months

Eurozone retail sales grew for the first time in five months in February but the pace of growth was weaker than expected, official data revealed Monday. Retail trade increased 0.3 percent month-on-month in February, after remaining flat in the previous three months. Although this was the first increase since September, the rate was slower than the forecast of 0.5 percent.
RTTNews | 13 days ago
German Factory Orders Stagnate In February

German Factory Orders Stagnate In February

Germany factory orders stagnated unexpectedly in February even though US importers brought forward imports to beat the impending tariffs. New orders in the manufacturing sector remained unchanged in February, reversing a 5.5 percent drop in January, Destatis reported Friday. Orders were forecast to grow 3.4 percent. Excluding large orders, new orders were 0.2 percent lower than in the previou
RTTNews | 16 days ago