Latest news with #PieroCipollone
Yahoo
26-07-2025
- Business
- Yahoo
ECB's Cipollone says euro zone inflation risks balanced, newspaper reports
FRANKFURT (Reuters) -Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview. The ECB left interest rates unchanged on Thursday and said the outlook for inflation is more uncertain than usual, even if the economy has appeared to remain resilient. Some policymakers argued the outlook for inflation has now worsened and risks were tilted to undershooting, but Cipollone said the broader Governing Council view did not change. "We now see an additional appreciation of the euro and a slight increase in energy costs," he told Slovenian newspaper Delo in an interview published on Saturday. "The overall assessment therefore stays the same." He added that trade tensions have increased but the global economy has so far been resilient. "Overall, it seems to me that the June assessment can be confirmed and that inflation expectations are balanced," Cipollone said. The ECB has halved its key rate to 2% since June 2024 but its moderately sanguine tone on Thursday was seen as a signal it was not in any hurry to cut again. Markets now see roughly a 50% chance of more rate cuts this year, with some economists saying the easing cycle may be over. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
26-07-2025
- Business
- Reuters
ECB's Cipollone says euro zone inflation risks balanced, newspaper reports
FRANKFURT, July 26 (Reuters) - Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview. The ECB left interest rates unchanged on Thursday and said the outlook for inflation is more uncertain than usual, even if the economy has appeared to remain resilient. Some policymakers argued the outlook for inflation has now worsened and risks were tilted to undershooting, but Cipollone said the broader Governing Council view did not change. "We now see an additional appreciation of the euro and a slight increase in energy costs," he told Slovenian newspaper Delo in an interview published on Saturday. "The overall assessment therefore stays the same." He added that trade tensions have increased but the global economy has so far been resilient. "Overall, it seems to me that the June assessment can be confirmed and that inflation expectations are balanced," Cipollone said. The ECB has halved its key rate to 2% since June 2024 but its moderately sanguine tone on Thursday was seen as a signal it was not in any hurry to cut again. Markets now see roughly a 50% chance of more rate cuts this year, with some economists saying the easing cycle may be over.
Bloomberg
26-07-2025
- Business
- Bloomberg
ECB's Cipollone Is Seeing ‘Conflicting Signals' in Economy
European Central Bank Executive Board member Piero Cipollone said the economy is sending 'conflicting signals' as officials wait for more clarity before taking a fresh view on whether interest rates need to be lowered any further. In an interview with Slovenian newspaper Delo, Cipollone said weak consumer confidence is a threat to consumption, 'while continued uncertainty and the unwinding of frontloading effects could weigh on business investment and exports.' At the same time, he highlighted a resilient labor market and plans for higher defense and infrastructure spending that should boost activity over time.
Free Malaysia Today
03-07-2025
- Business
- Free Malaysia Today
Euro zone bonds steady ahead of ECB speakers, shrug off Trump's bill
European Central Bank president Christine Lagarde said the euro zone is facing increased volatility in inflation. (Reuters pic) LONDON : Euro zone government bond yields were steady in early trading in Europe today, taking their lead from Treasuries, which barely reacted to the passing of US President Donald Trump's landmark tax and spending bill. Two European Central Bank (ECB) policymakers warned yyyesterday about the hit from a further appreciation of the euro on a weak euro zone economy that is bracing for US tariffs. The 90-day pause Trump activated following the market chaos unleashed by his April 2 'Liberation Day' tariff announcement expires in a week. ECB president Christine Lagarde said this week the euro zone is facing increased volatility in inflation, which will mean the central bank will have to act more forcefully to keep price pressures around its 2% target. German two-year yields, which tend to be the most sensitive to changes in rate expectations, were up less than 1 basis point today at 1.852%. Benchmark 10-year Bund yields rose 1 bp to 2.577%, in line with 10-year Treasuries, which held at 4.255%, near their lowest since early May. Money markets show traders expect just one more rate cut this year from the ECB, which would bring the benchmark deposit rate to around 1.8%, from 2% right now. Lagarde speaks later today, delivering the closing remarks at the ECB's Forum on Central Banking in Portugal. ECB board members Luis de Guindos, Piero Cipollone and Philip Lane will also speak during the day. Italian 10-year yields rose 2 bps to 3.489%, bringing their premium over Bunds to 90.5 bps, according to LSEG data. The spread is close to its lowest in a decade.
Arabian Post
02-07-2025
- Business
- Arabian Post
ECB Embarks on Dual‑Track DLT Settlement Strategy
The European Central Bank has green‑lit a pioneering dual‑track framework to enable settlement of transactions on distributed ledger technology platforms using central bank money. The Governing Council's initiative combines a short‑term pilot, dubbed Pontes, scheduled to interface DLT platforms with TARGET Services by the end of the third quarter of 2026, and a longer‑term initiative, Appia, which seeks to establish a future‑proof global DLT infrastructure. Pontes represents the near‑term goal: creating a secure link between existing DLT platforms and the Eurosystem's TARGET services—namely TARGET2, T2S and TIPS—through a unified Eurosystem solution. It builds directly on exploratory work carried out between May and November 2024, where 64 participants explored over 50 experimental setups that used intraday escrow and liquidity tokens. The ECB has indicated its intention to invite expressions of interest from the market to join Pontes' pilot phase, expected to commence by Q3 2026. The longer‑term Appia track explores integration of DLT in a broader ecosystem, extending into global payment and securities infrastructures. This initiative aims to support international use cases such as cross‑border foreign exchange settlements and compliance with global standards, collaborating with public and private sector stakeholders to assess interoperability, scalability and legal frameworks. ADVERTISEMENT During the 2024 discovery phase, experiments featured diverse approaches, including trials led by the Banque de France and Banca d'Italia. These trials used escrow-based intraday liquidity provision mechanisms that participants later advocated to evolve into overnight capabilities, shedding light on liquidity management inefficiencies. Officials noted the potential for simultaneous settlement and collateral automation to cut credit and liquidity risks, while potentially reducing operational costs. Piero Cipollone, a member of the ECB's Executive Board, remarked that although DLT and tokenisation remain nascent, they 'are likely to offer new ways of improving the settlement of financial transactions.' He emphasised that the dual‑track approach serves innovation while maintaining security and efficiency in financial market infrastructure. Pontes and Appia will operate under dedicated market contact groups. The ECB intends to outfit each with analysts and market participants to ensure operational robustness and collect stakeholder feedback as integration proceeds. With Pontes launching a Q3 2026 pilot, the ECB is concurrently reviewing additional trial proposals for integration within existing TARGET services frameworks. The initiatives support the Eurosystem's wider ambition to modernise wholesale settlement systems. Appia is envisioned as an evolution towards integrated ecosystems that support global operations and stimulate interoperability with other jurisdictions, thereby elevating Europe's position in the digital infrastructure space. European authorities have signalled enduring commitment to innovation since experimental work in 2024. The report released today, aligned with Pontes and Appia's dual‑track launch, highlights how central banks across the continent are balancing emerging technologies with systemic resilience goals—managing legal, technical and liquidity implications harmoniously. Market analysts believe the Pontes initiative addresses immediate demand from DLT innovators for central bank money settlement in familiar frameworks, while Appia opens the door to more ambitious, globally interoperable DLT ecosystems. Senior banking figures in Frankfurt have described the move as a 'critical turning point' in central banks embracing digital transformation to reduce transaction costs and boost cross-border efficiency across Europe. The ECB's decision signals readiness to bridge traditional financial infrastructure with blockchain-based innovations without compromising safety or oversight. Through Pontes, the Eurosystem seeks to preserve market standards for liquidity and settlement, building confidence among banks and fintechs in central bank money λ integration. Appia, in turn, presents a vision of digital finance aligned with evolving global regulation and technological standards. This marks the first time the ECB has approved a formal pilot to connect central bank money with DLT platforms. The outcomes of Pontes will help shape future integrations—potentially serving as a template for central bank digital currencies and wholesale tokenised ecosystems. The experiments under Appia could establish key precedents for global interoperability standards and regulatory coordination, reinforcing the Eurosystem's role as a leader in secure, innovative payment infrastructures.
