Tradeo ceased offering trading services last year in May. Trading and ancillary will not recommence, and the brand/platform will be permanently discontinued.
For the clients with remaining balances, kindly send a withdrawal request through your login or via chat or email. If there are any queries or concerns relating to your account or any other matter, please email us at [email protected]
European Central Bank President Christine Lagarde advised investors that a change to policy guidance is likely to be announced at the upcoming meeting on July 22nd. The most anticipated policy updates pertain to monetary stimulus.
The European Central Bank (ECB) president signalled that new measures could be introduced in 2022 to better assist the euro-area economy after the current emergency bond program ends.
The announcement came shortly after the ECB raised its inflation target to 2%. “The Governing Council considers that price stability is best maintained by aiming for a 2% inflation target over the medium term. This target is symmetric, meaning negative and positive deviations of inflation from the target are equally undesirable,” the ECB said in a statement on July 8th.
Prior to Lagarde’s announcement, the next ECB meeting was expected to be relatively uneventful. However, after the G20 Venice Conference on Climate, the president has now said to expect “some interesting variations and changes”.
“Given the persistence that we need to demonstrate to deliver on our commitment, forward guidance will certainly be revisited,” Lagarde went on to say.
The ECB’s decision to review policy guidance earlier than expected is thought to be due to the euro-zone economy beginning to recover from the coronavirus pandemic. The review also took into account climate-change considerations, which will be introduced into the policy, along with the cost of owner-occupied housing.
Lagarde also pointed out that she expects the ECB’s €1.85 trillion Pandemic Emergency Purchase Programme to run until March 2022 – the earliest possible end date. After that, it could “transition into a new format”.
The ECB president dismissed the need to discuss the emergency stimulus, which is speculated to be coming to an end. Lagarde pointed out that the Delta variant continues to pose a threat to total economic recovery. “We need to be very flexible and not start creating the anticipation that the exit is in the next few weeks, months,” she said.
Bank of France chief and Christine Lagarde’s Governing Council colleague, Francois Villeroy de Galhau, made a similar statement yesterday, adding that policy can be altered during any monetary meeting. “We have at least four such meetings between now and the end of the year,” he said.
The ECB’s approach to its stimulus program contrasts that of other central banks around the world. Officials of the US Federal Reserve have already begun discussing when to start tapering their stimulus program as economic growth and inflation accelerate. Also, many economists suggest that the Bank of England is likely to raise interest rates as early as next year.
Instead, the immediate task of the ECB is to review part of its guidance on future interest rates and asset purchases that are tied to the previous inflation goal of below 2%.
Lagarde spotlighted what she felt was the most important issue: “the acceptance and the tolerance” that a transitory inflation overshoot is needed in order to restore price stability.
As of 10:26 am GMT today, the euro was down 0.2% at $1.1854.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.