ECB Räntan är fortfarande ”restriktiv”,

ECB sänker styrräntorna med 0,25 procentenheter.

Den nya inlåningsräntan landar därmed på 2,75 procent.

”Vid denna tidpunkt är vi fortfarande i restriktivt territorium och vi har inte diskuterat ännu när vi ska stoppa”

DI 30 januari 2025

The ECB cut rates, and markets are convinced more will follow

The critical question now is to identify the neutral rate, known in the jargon as r*, at which policy is neither restrictive nor accommodative.

Lagarde said that ECB monetary policy remained restrictive, but...

conditions in the banking system

— more important in Europe than in the US where many companies rely on bond finance —

remain looser than for most of the time since the Global Financial Crisis began in 2007.

Another sign of growing resilience comes from banking stocks.

Brutalized by the GFC and by the euro-zone sovereign debt crisis that followed, they remain far below their highs.

But they are on a good run, and are now at their highest since 2012.

After the market closed, Bloomberg published a story sourced to ECB officials,

saying that the central bank was ready to admit that conditions were no longer restrictive at its next meeting in March.

John Authers Bloomberg 31 January 2025

Englund