It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
ECB will estimate health of bank credit
Next month, the European Central Bank is on the verge of reassessing the outlook for bank lending next month because there’s a likelihood that EU financial institutions could tighten credit supply and drive the current economic deceleration. That’s what Peter Praet, the bank’s chief economist uncovered.
His remarks will most probably cement market hopes for another round of multi-year ECB loans to financial institutions because existing ones worth approximately 750 billion euros start maturing in 2020, making a cliff-edge for lenders in Italy as well as other southern European nations.
The euro zone's economy has kept slowing, raising questions over ECB plans to have interest rates lifted after next summer.
Praet told that they don’t need to closely watch the transmission of monetary policy via the banking system. He added that in March they’ll come up with an assessment of the current as well as expected state of bank transmission.
In addition to this, Praet told that the ECB's Targeted Long-Term Refinancing Operations had appeared to be an extremely useful thing and they remained part of the major bank’s "toolbox".
By the way, Praet turned out to be the second ECB board member to pay much attention to the prospect of another TLTRO right after the previous week Benoit Coeure told that another round was probable.
In addition to this, the chief economist told that he actually expected the major bank’s estimates to be reduced again in March for the near term. Moreover, he drew attention to some positive things, including soaring employment and consumption.
The expert told that the EU’s key financial institution could push back the timing of its first post-crisis rate lift if required.
The week was overfilled with events, especially from the BRICS summit and Jackson Hole meeting. Altogether, the market gained some fantastic opportunities. Here’s what we have for today’s session:
Hello, and welcome to the daily news release! Will the downtrend in gold change this week? What about oil? How long will it skyrocket? We have a lot to share with you.
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?