FRANKFURT (Reuters) - European Central Bank interest rate cuts should compensate for the tightening impact of the bank's balance sheet runoff, board member Piero Cipollone said on Tuesday ...

The ECB, which raised interest rates at an unprecedented pace in 2022 and 2023, still has a bloated balance sheet from long-concluded stimulus schemes, and commercial banks now earn hefty interest ...

In the background remains a structural tightening trend as the ECB shrinks its balance sheet and drains reserves. So far liquidity conditions are still ample and the impact has been mainly felt in ...

The last two years of losses would be "offset against future profits" on the ECB's balance sheet, it added. The ECB would "still incur losses in the coming years". "Should this be the case ...

ECB'S CIPOLLONE: WE SHOULD ENSURE THAT OUR RATE DECISIONS ADEQUATELY COMPENSATE FOR THE TIGHTENING INDUCED BY THE REDUCTION OF OUR BALANCE SHEET.

Since the onset of the financial crisis in 2007, there has been a dramatic expansion in the size of the balance sheets of the Bank of England (BOE), the European Central Bank (ECB), and the U.S.