Amid growing concerns that many euro‑area nations are being pulled into a French debt crisis, the ECB may soon resume buying sovereign bonds. However, the approach would differ from previous programmes and has sparked debate over its legality and effectiveness.
The September 2026 SESFOD survey indicated a modest easing of credit terms across all counterparty types in the euro‑denominated securities financing and OTC derivatives markets, driven mainly by lower price terms. Non‑price terms improved slightly for banks and dealers, worsened for hedge funds, and remained unchanged for others. Respondents expect a further slight easing over the next three months, with hedge funds’ leverage use rising marginally and no change in valuation dispute volume or duration.
The European Central Bank announced that it has amended its monetary policy implementation guidelines, which will become effective on 30 November 2026, following its regular review process.
The Eurosystem introduced Pontes, its first initiative to make central bank money usable for tokenised finance, allowing wholesale tokenised asset transactions to be settled with risk‑free central bank money. The platform builds on earlier DLT tests and will be expanded gradually, with full implementation targeted for 2028.
The European Central Bank raised its key interest rate to 2.5% and warned that inflation will remain elevated until at least 2027 due to price shocks from the Middle East conflict.
The European Central Bank reiterated that users of the future digital euro will remain anonymous, defending privacy as central bank digital currencies face worldwide scrutiny.
Rising energy prices are threatening to lift inflation again. The ECB is not expected to act before Thursday, but experts say a policy response could come in the autumn.
The introduction of a European digital currency is becoming increasingly concrete. EU parliamentarians voted clearly in favor of the digital euro project as expected. The next step involves refining the legal framework for implementation.
The ECB is considering doubling minimum reserve requirements for banks to save billions in interest rate costs. This move could particularly benefit the Bundesbank while disadvantaging commercial banks.
ECB Vice President Boris Vujcic, who is replacing De Guindos, believes inflation will persist at elevated levels for an extended period. He characterized the current official interest rate of 2.25% as appropriately robust.