ECB vs inflation

"It would take a dramatic turnaround to lower now"  

It would take a "very dramatic turnaround" in the eurozone's economic outlook for the ECB to cut interest rates. That's what Latvia's central bank governor Martins Kazaks says, according to Bloomberg.

As an example, he cites a substantial decline in economic activity or a sharp increase in unemployment.

- There is no need to discuss interest rate cuts, he says according to the news agency.  

The statement comes after today's preliminary figures showed that inflation in EMU fell sharply to 2.9 percent in October, the lowest level in 27 months. 

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ECB summit: Must not ease austerity too early  

Even if inflation in the EMU fell significantly in October, the ECB's policy rates must remain at a high level for some time to come, believes Bundesbank Governor Joachim Nagel.  

- Our tightening monetary policy is working, but we must not ease it too soon, he says according to Bloomberg.  

The statement comes five days after the ECB paused interest rates after ten straight hikes. Nagel says it is too early to say whether interest rates have peaked or not and that the ECB will be strictly computer-driven.  

The Eurozone's preliminary inflation for October came in during the morning at 2.9 percent, clearly lower than expected.

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Swedish inflation  

The idea: The peak has probably been reached – but there are risks  

The inflation peak is probably behind us, says Riksbank governor Erik Theéden to DI. But whether it comes down in a sustainable way to 2 percent remains to be seen, he continues. 

 

- We do not see any great risk that we will return to 10 percent, he tells the newspaper.  

 

However, the fact that September inflation came in higher than expected raises concerns that the decline is not as sustained as had been hoped. In order to arrive at a decision, those numbers must be set against incoming data, emphasizes Thedéen.