Results for: European Central Bank

The European Central Bank’s (ECB) latest report highlights a decline in the euro’s share in foreign exchange holdings. In 2023, the euro’s share dropped to 20%, driven by factors such as the rising popularity of the US dollar, Japanese yen, and other non-traditional reserve currencies. The ECB also notes that the Swiss National Bank has significantly reduced its euro-denominated reserves. Despite rising interest rates in the eurozone, the currency’s attractiveness has not improved due to higher rates in other regions and the eurozone’s muted economic prospects. The report also expresses concerns about Russia’s plans to reduce its euro stockpile, which could further impact the currency’s status in global foreign exchange reserves.

Filippo Alloatti of Federated Hermes discusses the outlook for the European Central Bank’s monetary policy.

European Central Bank (ECB) board member Isabel Schnabel delivered a speech at the inaugural conference of an ECB research network dedicated to the topic of monetary policy transmission in a changing world. Schnabel’s remarks focused on the current challenges facing central bankers in terms of effectively implementing monetary policy. She emphasized the need for central banks to adapt to the evolving economic and financial landscape, including the rise of digitalization and the increasing interconnectedness of global markets.

Czech National Bank Vice-Governor Eva Zamrazilova hinted at a potential interest rate cut of 25 or 50 basis points at the upcoming May 2 meeting. This move comes amidst the bank’s easing cycle that began in December 2023. Notably, the Czech Republic maintains its own monetary policy through the Czech National Bank (CNB) as it has not adopted the euro.

The euro area economy is showing signs of recovery, with a major rebound in services activity. This has led to a rise in the euro’s value and dampened expectations for a rate cut by the European Central Bank (ECB) in June, at least for the time being.