The world's biggest central banks, moving in tandem at the height of the pandemic, are set to tighten policy at vastly different speeds, likely increasing economic and market volatility this year, top policymakers said on Friday.
FRANKFURT (Reuters) -Euro zone economic sentiment dropped more than expected last month while inflation hit another record high, indicating the economy is under renewed stress as surging coronavirus infections force governments to tighten restrictions.
FRANKFURT European Central Bank policymakers meeting last week sought a greater acknowledgement of inflation risks but were rebuffed by the bank's chief economist Philip Lane in an unusually robust debate, sources close to the debate told Reuters.
(Reuters) -Britain became the first G7 economy to hike interest rates since the onset of the pandemic on Thursday, with the U.S. Federal Reserve also signalling plans to tighten in 2022 but the European Central Bank only slightly reining in stimulus.
FRANKFURT (Reuters) -The European Central Bank took another small step in rolling back crisis-era stimulus on Thursday but promised to hold down borrowing costs next year and even kept the door open to restarting emergency support.
* Other central banks more cautious on withdrawing stimulus
(Adds Norwegian, Swiss central banks moves, PMIs)
* Decision at 1245 GMT, Lagarde's news conference at 1330
FRANKFURT European Central Bank policymakers are homing in on a temporary increase in the regular bond purchase scheme that would still significantly reduce overall debt buys once a much larger pandemic-fighting scheme ends in March, sources told Reuters.
FRANKFURT Euro zone inflation could exceed the European Central Bank's forecast in the long term, so there is no reason now to boost a legacy bond purchase programme when an emergency scheme ends next March, ECB policymaker Madis Muller said.
FRANKFURT The European Central Bank should focus its stimulus effort on a legacy Asset Purchase Programme when emergency support expires in March but must keep its commitment short as inflation could exceed expectations, ECB policymaker Peter Kazimir said on Tuesday.