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The prospect of the European Central Bank diverging from the Federal Reserve on interest rate cuts is likely to be "particularly negative" for the 20-nation euro zone, according to one economist. The ECB appears on course to cut interest rates in June, barring any major surprises, and recent inflation data has since bolstered the case for an imminent reduction in borrowing costs. It leaves the ECB firmly on track to cut interest rates before the Fed. "The problem of cutting rates right now is that the ECB takes for granted the strength of the euro . Lacalle said a June rate cut from the ECB was not going to make German, French or Spanish businesses take more credit "because a small rate cut is not the driver of credit demand."
Persons: Christine Lagarde, Daniel Lacalle, Gestion, CNBC's, Lacalle Organizations: European Central Bank, ECB, Federal Reserve, CNBC Locations: Frankfurt, Germany, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEuphoric messaging around the Spanish economy was a 'big mistake' in the regional elections, expert saysDaniel Lacalle, chief economist at Tressis, speaks to CNBC's Charlotte Reed about the Spanish regional elections
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGlobal economy is heading into a decade of low growth, economist saysDaniel Lacalle, chief economist at Tressis Gestion, says the global economy is heading into a decade of sluggish growth, but a Chinese reopening will be the biggest positive for 2023.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's tech sector is likely to be 'very strong' in 2023, economist saysDaniel Lacalle, chief economist at Tressis Gestión, says investors should be diligent in considering which sectors in China to invest in, and adds that "it's not going to be a year of looking at an index" or of "being passive."
The Bank's Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated U.K. government bonds. Bloomberg | Bloomberg | Getty ImagesLONDON — The Bank of England's emergency bond-buying program draws to a close on Friday, with traders remaining on edge as volatility in the U.K. bond market looks set to continue. The central bank initially announced the two-week intervention in the long-dated bond market on Sep. 28, having been informed that a number of liability driven investment (LDI) funds — held by pension plans — were hours from collapse as U.K. government bond prices plunged. The BOE's Pill also highlighted that recent actions taken to ensure orderly market function and financial stability sought to preserve the effectiveness of monetary policy, but should not be considered monetary policy actions in themselves. Chris Lupoli, U.K. rates and inflation strategist at BNP Paribas , told CNBC Thursday that the Bank of England remained focused on the temporary purchases serving as a "backstop."
Central banks need to tighten further, argues economist
  + stars: | 2022-10-13 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCentral banks need to tighten further, argues economistDaniel Lacalle, chief economist at Tressis Gestion, gives his take on central bank action and how governments must tackle the precarious times ahead.
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