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The European Central Bank (ECB) policymaker, Dimitar Radev said on Tuesday that it is too early to say if rate hike at the April policy meeting is needed.
Likelihood of adverse inflation scenario is increasing.
Inflation expectations may shift faster due to memory of price surge after Russia invaded Ukraine in 2022.
ECB must be ready to act if signs of inflation persistence emerge.
It is too early to say if rate hike on April 30 is needed.
Inflation expectations anchored for now, second-round impacts not yet visible.
At the time of press, the EUR/USD pair is down 0.03% on the day at 1.1537.
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.
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The European Central Bank (ECB) policymaker, Dimitar Radev said on Tuesday that it is too early to say if rate hike at the April policy meeting is needed.
日本 二月 日本领先指标为112.4，高于预期112.3
美国西德克萨斯中质原油（WTI）——美国基准原油价格——周二亚洲时段获得新买盘，价格回升，接近前一天创下的近四周高点。
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – catches fresh bids during the Asian session on Tuesday and climbs back closer to a nearly four-week high set the previous day.
Japan Leading Economic Index came in at 112.4, above expectations (112.3) in February
Japan Coincident Index down to 116.3 in February from previous 117.9
AUD/JPY holds ground after posting gains in the previous trading day, hovering around 110.50 during the Asian hours on Tuesday. The currency cross remains in the positive territory as the Japanese Yen (JPY) weakens amid uncertainty surrounding the Bank of Japan’s (BoJ) policy stance.
FXStreet数据显示，印度黄金价格（黄金/美元）周二上涨。
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.