#EuropeAnCentralBank

The euro could climb to levels last seen five years ago as a drop in hedging costs would drive flows of more than $200 billion and prop up the currency, according to Morgan Stanley.

The European Central Bank will need to raise borrowing costs if an increase in crude prices feeds through to inflation expectations, according to Governing Council member Martins Kazaks.

European Union leaders must show courage in strengthening the bloc’s foundations, according to European Central Bank President Christine Lagarde.

European Central Bank Chief Economist Philip Lane kept his cards close to his chest on whether he’ll propose an interest-rate hike next month.

France’s economy is showing signs of faltering as the fallout from the Middle East conflict hits growth and ratchets up inflation pressure, according to the central bank’s monthly survey of companies.

The European Central Bank will continue analyzing the economy before deciding next month whether to raise interest rates, but policymakers must take action if the Iran war jeopardizes price stability, according to Governing Council member Joachim Nagel.

The European Central Bank will raise interest rates twice this year as the Iran war drives inflation higher, a Bloomberg survey showed.

The European Central Bank is carefully weighing its response to the Iran war and the impact on inflation to ensure it acts neither prematurely nor too late, President Christine Lagarde told Spain’s RTVE.

The European Central Bank is “highly vigilant” to rising inflation risks due to the Iran war and will act as needed to prevent higher energy costs spilling over into prices more broadly, Governing Council member Joachim Nagel said.

European Central Bank President Christine Lagarde said that even euro-denominated stablecoins would create risks to financial stability and monetary-policy transmission, questioning the case for introducing such instruments.

The European Central Bank said burgeoning private markets could support a push by politicians in the region to channel savings into investments needed to modernize the economy.

From CNBC: Central banks risk a recession by raising rates to tackle Iran oil shock, strategist warns

Euro-zone inflation will jump to 2.7% on average this year but return close to the European Central Bank’s 2% target already next year, according to the institution’s quarterly survey of professional forecasters.

UK shares dropped in thin holiday trading as NatWest Group Plc fell more than 3% after reporting net interest income that came in slightly below expectations.

Fed leads list of central bank meetings this week, while Big Tech giants report earnings.