Lagarde Rules Out Bond Market Intervention; Bond Yields Complicate ECB Policy
- Reports
- 6
- Developments
- 2
- Repetition
- 67%
New informationRepeats or wire copies
What happened
Christine Lagarde, President of the European Central Bank, stated that the current bond sell-off is making borrowing more expensive in the eurozone, which is curbing growth and inflation. She also ruled out support for France’s struggling bond market. Carsten Brzeski, global head of macro at ING Group, noted that the surge in German bond yields has already had an impact similar to an additional 25bp rate hike. The European Central Bank has raised interest rates twice in the last four months, with another hike expected in December.
From irishtimes.com, shafaqna.com
Why it matters
The independent rise in long-term interest rates due to bond market turmoil is complicating the European Central Bank's monetary policy. Lagarde noted that financing conditions have tightened as long-term interest rates have risen notably since the last meeting. This dynamic raises questions about whether the European Central Bank will proceed with a December rate hike.
The European Central Bank's meeting in Bangkok occurred during the Annual Meetings of the International Monetary Fund and World Bank.
From irishtimes.com
Who's involved
- Christine LagardePresident of the European Central Bank, commenting on bond market interventions
- ING GroupGlobal head of macro at ING Group, commenting on ECB policy
- European Central BankCentral bank of the European Union and the eurozone
- Emmanuel MacronPresident of France, whose bond market Lagarde addressed
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- euroSpeculative
Lagarde's dismissal of intervention hopes could cause the euro to gain strength in the market price.
- EuropeSpeculative
The policy shift could ease credit and funding costs across Europe.
- Deutsche BankSpeculative
Increased eurozone bond yields could raise borrowing costs, impacting Deutsche Bank's lending and investment activities.
- Santander GroupSpeculative
Increased eurozone bond yields could raise borrowing costs, impacting Santander Group's lending and investment activities.
How it developed
Newest first. Tap a step to see who reported it.ING macro head Brzeski commented on ECB policy during Lagarde's Bangkok visit.1 source
Lagarde dismissed hopes for intervention in France's bond market during finance chiefs meeting in Bangkok.1 source
Keep exploring
Part of
IMF and World Bank meetings shape global economic policy and developmentAlso in this story
- UNDP announced initiatives supported by EIB during World Bank Group meetings held in Bangkok.
- Anar Karimov of Azerbaijan participated in IMF Article IV consultations and held bilateral meetings with the World Bank and ADB in Bangkok.
- Bangkok is hosting the annual meetings of the International Monetary Fund and the World Bank.
- The World Bank's Annual Meetings in Bangkok are focusing on development in African markets.
The entities involved
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Bangkok
capital of Thailand
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Christine Lagarde
President of the European Central Bank