Latest news with #GoverningCouncil
Mint
2 days ago
- Business
- Mint
ECB Officials Ready to Keep Working With Convicted Colleague
(Bloomberg) -- European Central Bank policymakers are prepared to keep working with their colleague Peter Kazimir despite his conviction for bribery this week, according to people familiar with their thinking. While officials consider the guilty verdict unpleasant and are mindful of the reputational damage it could bring for the ECB, they want to see the outcome of his appeal against the Slovak court ruling, said the people, who asked not to be identified reflecting on confidential debates. Kazimir intends to challenge his conviction in the case, which dates back to his time as finance minister, and won't resign as Slovakia's central-bank chief, according to his lawyer. That's despite the 56-year-old's term ending on June 1. He'll remain in temporary charge until the government can agree on a successor, though could be removed if a higher court confirms his guilt. For now, Kazimir is expected to attend next week's Governing Council meeting in Frankfurt, the people said. He won't have a vote, however, due to the ECB's rotational system. An ECB spokesperson declined to comment. The situation comes at an awkward time for the Frankfurt-based institution, which faces tough decisions on how to steer the euro zone through President Donald Trump's reordering of global trade. They're ready to cut interest rates again on June 5, but less sure thereafter with inflation likely to slow in the near term but at risk of surging later on. Kazimir's trial isn't the first against one of the ECB's own. Malta's central-bank chief Edward Scicluna asked the ECB last July if he could step aside while a court case against him for fraud is pending. His deputy has attended Governing Council meetings since. Former Latvian central-bank head Ilmars Rimsevics, meanwhile, fought accusations of bribery while in office through 2019. His trial started weeks before his term ended and he was given a six-year prison sentence in 2023 — a ruling he's still appealing. ECB President Christine Lagarde was herself convicted of negligence by a Paris court in 2016 over her handling of a multi-million-euro dispute during her time as French finance minister almost a decade earlier. She wasn't given any punishment. Kazimir's conviction adds to arguments that a career in politics, rather than academia, leaves officials more exposed to scandals. The issue is facing particular scrutiny in a year that could mark the biggest personnel shakeup at the ECB since 2019. Austria has already appointed former Labor and Economy Minister Martin Kocher to succeed Robert Holzmann at the helm of its central bank. Permanent replacements in other countries including Slovenia, the Netherlands and Portugal have yet to be named. More stories like this are available on
Bloomberg
3 days ago
- Business
- Bloomberg
ECB's Panetta Suggests Inflation Is Almost Defeated in Euro Zone
European Central Bank Governing Council member Fabio Panetta signaled that inflation is nearly fully tamed, while cautioning that further interest-rate cuts require finely balanced judgments. Speaking on the day that his country and two other major euro-zone economies release consumer-price data, the Bank of Italy governor hailed policymakers' progress but warned that their decisions from now on about whether to keep reducing borrowing costs won't get any easier.
Bloomberg
4 days ago
- Business
- Bloomberg
ECB's Knot Says Inflation May Cause Considerable Challenges
European Central Bank Governing Council member Klaas Knot warned that 'historically large shocks' in the global economy and their fallout on prices will be hard to navigate and require flexibility from policymakers. The framework for global trade is highly uncertain, but it's also unclear how the economy responds to the current shifts, the Dutch central-bank chief said Wednesday in a speech. While downside risks to growth and inflation dominate in the near term, the outlook further down the line — which matters for ECB policy — is 'more ambiguous,' he said.
Bloomberg
5 days ago
- Business
- Bloomberg
ECB Should Keep Its Monetary Options Open This Summer
It's not shaping up to be a relaxing summer at the European Central Bank. Its quarterly economic review on June 5 should come with a widely expected eighth successive 25 basis-point rate cut. That means its deposit rate will have been cut in half over the past year to 2%. The hawks on the ECB Governing Council are calling for a stop there. But with the intense pressure on the European Union negotiating US tariffs on the struggling export-led economy, the ECB can't expect to simply pause at its July 24 meeting and head for the lounge chairs and hiking trails. All options, monetary and fiscal, have to be kept open, especially with a strengthening euro weighing down the economy.
Bloomberg
5 days ago
- Business
- Bloomberg
ECB Is Close to Reaching Its Inflation Target, Nagel Says
Subscribe to Economics Daily for the latest news and analysis. The European Central Bank is close to hitting its 2% inflation goal, but elevated uncertainty makes it impossible to predict future interest-rate moves and requires maximum flexibility, Governing Council member Joachim Nagel said.
