MNI EXCLUSIVE: MNI Interviews Canadian Fiscal Advisor
Mar-20 2025 14:44
- MNI interviews Canadian fiscal advisor on economic outlook, Carney agenda -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
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ECB: Cipollone Q&A: Reassess Position On Structural Portfolio In 2026
Feb-18 2025 14:43
- Q: The market is expecting a structural portfolio announcement. Can you give an update on the timeline?
A: We will reassess our position in 2026. Currently structural liquidity needs are fulfilled by the legacy portfolios, so there is no need to intervene now. The time will come.
- Q: If you needed to ease the central bank stance further and quickly, would you cut rates more or stop QT? How do you weigh these two decisions?
A: Let me give my personal view: If something happens, it will be silly not to use all the instruments we have. I don’t have in mind the exact reaction function right now. When we make projections, we study the reaction of the economy to different policy paths. Regarding transmission, things like TPI are also part of the toolkit.
EQUITIES: A quick fade in US Indices on the Cash open
Feb-18 2025 14:38
- Not seen any standout flows to explain that sudden 14 points drop in the Emini on the cash open.
- There was no notable program orders, and the only order that was seen going through was a 1k seller in NQH5 (Nasdaq).
ECB: Cipollone Q&A: QT Playing Some Role On Credit Channel
Feb-18 2025 14:37
- Q: (1) How do you interpret the pressure seen in the Italian repo market at the end of last year? Do you think there is something physiological there that the ECB should be taking into account?
A: (1) The banks are adjusting well to the new framework. We are moving away from a situation of scarce collateral. We see that the transmission is not provoking any fragmentation. Our overall assessment is that the money market conditions have not changed too much.
- Q: (2) Are we risking over estimating the impact of QT on the credit channel, given a lot of the activity is skewed towards the front-end of the yield curve (e.g. mortgages)?
A: (2) Even though we have been reducing interest rates in a robust way since June, we still see that the cost of borrowing for outstanding lows is still high, so it still takes time for the marginal to transmit to the economy. The fact it is taking so much time for the policy rate to transmit to borrowing, makes me think there is some role being played by QT.
