ECB's President Lagarde and Vice President Centeno have expressed concerns about the Euro-area economy. Centeno highlighted anxiety over a soft landing, the need for the ECB to reduce its balance sheet, and the strength of the European labor market. Lagarde warned about higher funding costs impacting banks' profitability and the potential rise in non-performing loans amid low growth and higher rates.
🔴 ECB'S PRESIDENT LAGARDE: NON PERFORMING LOANS COULD RISE AMID LOW GROWTH AND HIGHER RATES.
🔴 ECB'S PRESIDENT LAGARDE: IF EU BANKS' HOLDINGS OF FIXED-INCOME ASSETS NEED TO BE SOLD, THEY COULD BE MARKED DOWN DRASTICALLY.
🔴 ECB'S PRESIDENT LAGARDE: HIGHER FUNDING COSTS ARE WEIGHING ON BANKS' PROFITABILITY.
🔴 ECB'S PRESIDENT LAGARDE: POLICYMAKERS NEED TO STAY PROACTIVE.
🔴 ECB'S PRESIDENT LAGARDE: EUROPE’S FINANCIAL SYSTEM AVOIDED WORST-CASE SCENARIO.
🔴 ECB'S PRESIDENT LAGARDE: POLICYMAKERS NEED TO BE ALERT TO FINANCIAL STABILITY RISKS.
🔴 ECB'S PRESIDENT LAGARDE SPEECH AT ESRB. https://t.co/4tXHBuP1K9
🔴 ECB'S CENTENO: LABOR MARKET HAS GIVEN SIGNS OF ENORMOUS RESILIENCE.
🔴 ECB'S CENTENO: RATES WON'T DESIRABLY RETURN TO ZERO.
ECB’s Centeno Sees ‘Anxiety’ Over Soft Landing in Euro Area https://t.co/B43vYVoPog
ECB’s Centeno Sees ‘Anxiety’ Over Soft Landing in Euro Area https://t.co/9OLAmxJFAx
ECB’s Centeno Sees ‘Anxiety’ Over Soft Landing in Euro Area https://t.co/bh9yf7SMJ6
🔴 ECB'S CENTENO: I DON'T SEE REASONS TO ACCELERATE APP QT.
🔴 ECB'S CENTENO: THE ECB NEEDS TO REDUCE ITS BALANCE SHEET.
🔴 ECB'S CENTENO: THERE'S ANXIETY IF THERE WILL BE A SOFT LANDING.
🔴 ECB'S CENTENO: EURO-AREA GDP NUMBERS HAVEN'T BEEN GREAT.
🔴 ECB'S CENTENO: THE EUROPEAN LABOR MARKET IS VERY STRONG.
🔴 ECB'S CENTENO: WE'RE NOT SEEING ANY SIGNS OF SECOND-ROUND EFFECTS.
🔴 ECB'S CENTENO: DATA WILL TELL US HOW LONG WE KEEP RATES AT THIS LEVEL.
🔴 ECB'S CENTENO: THE ECB IS DATA DEPENDENT.