22 Mins Ago
ECB member de Galhau: We are not calendar driven, we are data-driven
Francois Villeroy de Galhau, governor of the Bank of France.
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French central bank chief François Villeroy de Galhau stressed that it was not possible to say in which season the European Central Bank may cut interest rates this year.
“About the season, why don’t I say anything? I said it should be this year, barring major surprises. But…we are not calendar driven, we are data-driven,” he said during a CNBC-moderated panel event at the World Economic Forum in Davos, Switzerland.
On the path of inflation, he added: “It’s too early to declare victory … the job is not yet done. That said, interest rate tightening has been quite successful so far, more successful than we thought even at Davos one year ago.”
“What we can see on both sides of the Atlantic is something like a soft landing so far.”
— Jenni Reid
19 Mins Ago
IMF expects interest rates to come down in the second half of the year
Gita Gopinath, first deputy managing director of International Monetary Fund (IMF), spoke to CNBC at the ECB Forum in Portugal.
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It is “premature” to conclude that central banks will cut rates “aggressively” this year, according to Gita Gopinath, first deputy managing director of the IMF, speaking on CNBC’s “The High Rate Reality” panel at Davos.
While inflation has come down, “the job is not done,” she added, with tight labor markets in the U.S. and Europe. The IMF expects interest rates to come down in the second half of the year.
Compared to the period after the global financial crisis in 2008, Gopinath said she expected rates to be higher in the next three to four years.
— Lucy Handley
An Hour Ago
European Central Bank’s Centeno highlights inflation progress in euro zone
Inflation in the euro zone has been on a “very positive” trajectory, Portugal’s central bank governor Mario Centeno said Tuesday, even as his peers on the European Central Bank Governing Council struck a more hawkish tone in recent days.
“We remain data dependent, that’s how we frame our decisions … One of the greatest successes of the ECB lately is being able to anchor expectations for inflation in the medium term at 2%, and this is because we are credible, we have to remain so,” Centeno said.
— Jenni Reid
An Hour Ago
Global leaders discuss ‘The High Rate Reality’
Join CNBC at 7.15 a.m. U.K. time where anchor Steve Sedgwick will moderate a panel on “The High Rate Reality,” with guests Adena Friedman, CEO of Nasdaq, Gita Gopinath, the first deputy managing director of the International Monetary Fund (IMF), Chuck Robbins, chair and CEO of Cisco and Francois Villeroy de Galhau, governor of the Bank of France and board member of the European Central Bank (ECB).
The European Central Bank may hold off starting interest rate cuts in 2024, upending market expectations, with Governing Council member Robert Holzmann saying on Monday that those who hoped for rate cuts to start this spring would leave Davos “deeply disappointed.”
The panel will talk about whether high rates will become the “new normal” and what that means for markets.
Headline inflation rose to 2.9% in the euro zone in December, up from 2.4% the previous month. The ECB targets inflation at 2%.
— Lucy Handley
Read More:World Economic Forum (WEF) 2024
2024-01-16 07:46:00
