Central Banks
ECB Posts Its First Loss Since 2004 After Barrage of Rate Hikes
- Risk provisions are depleted, more negative results expected
- Central bank says outcome doesn’t harm price-stability mission
The European Central Bank.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank recorded its first loss in two decades following an unprecedented ramp-up in borrowing costs to tackle inflation.
The shortfall for 2023 — even after the full release of €6.6 billion ($7.2 billion) in risk provisions — totaled €1.27 billion, as rising interest rates increased the cost of past stimulus efforts. While the ECB also warned of negative results “over the next few years,” it said this won’t impede its operations.