Ecb

• Researchers at the European Central Bank (ECB) warned in a Monday blog post that a stock-market correction is likely following a "blistering rally" in technology stocks. • Economists Malin Andersson, Stefano Corradin, and Kalin Nikolov argue that an adjustment is expected regardless of whether current AI-driven valuations are fundamentally rational. • The ECB warns that such a correction could lead to severe economic consequences across the euro zone.

• The EUR/JPY currency pair rose 0.15% on Friday, trading around 184.15 as investors weigh potential interest rate hikes from both the European Central Bank (ECB) and the Bank of Japan (BoJ). • July inflation data showed a 0.1% monthly increase in headline CPI and 0.2% for core inflation, with annual headline inflation remaining high at 3.4%. • The current economic climate is significant because high inflation is stagnating spending power for wage earners and keeping core inflation above the 2% target.

• The EUR/JPY currency pair remained steady around 183.80 on Thursday, reflecting a balance between European Central Bank (ECB) rate hike expectations and Bank of Japan (BoJ) tightening hopes. • The Japanese Yen continues to struggle due to significant interest rate differentials compared to other major economies and rising import costs. • Concerns regarding Japan's fiscal position are further weighing down the Yen, preventing a strong recovery despite potential policy shifts.

• The European Central Bank (ECB) utilizes the ECB-BIG index to monitor credit conditions across the euro area by analyzing a broad set of indicators. • The index tracks critical data regarding credit availability, costs, and needs, providing a comprehensive summary when individual indicators provide conflicting signals. • This tool is vital for understanding economic shifts, as evidenced by its ability to highlight the diverging trends between household and firm bank loans during the 2008 global financial crisis.

• The European Central Bank (ECB) and national supervisors have published the results of the 2026 geopolitical risk reverse stress test. • Participating banks analyzed various risk narratives, including military conflicts, cyber incidents, economic sanctions, and disruptions to energy and supply chains. • The exercise required banks to evaluate risks through three specific transmission channels: the financial market, the real economy, and safety and security.

Exclusive: As wildfires rage, Frank Elderson says more work needed to assess risk from collapse of ecosystem servicesA senior policymaker at the European Central Bank has said the climate emergency and the breakdown of nature poses a dramatically growing risk to the global economy.Frank Elderson, a member of the ECB’s executive board, said the eurozone lender of last resort was stepping up its monitoring of the financial risks linked to the destruction of “ecosystem services”, which are nature-related processes or assets that support human activity. Continue reading...

• On 23 July 2026, the European Central Bank (ECB) decided to keep its three key interest rates unchanged, including maintaining the deposit rate at 2.25%. • This pause follows a quarter-percentage-point increase in June, as policymakers weigh slowing underlying inflation against renewed pressure from rising oil and gas prices. • The decision highlights a tension between cooling inflation and upside risks, with hawkish internal debates intensifying.