DWS Institutional ESG Euro Money Market Fund IC

ISIN: LU0099730524Koers per datum: 13-5-2022Uitgiftekoers: 13.841,82
 Valuta: EURVerkoopkoers: 13.704,77

Torsten Haas

Fondsbeheerder sinds: 1-1-2013
Beheer locatie: Duitsland

Huidige opmerking

At its meeting on March 10, the Governing Council of the European Central Bank (ECB) decided to reduce the purchase volume of its securities purchase program (APP) in Q2 2022, as inflation in the Eurozone is moving sharply closer to the ECB’s target of 2% over the medium term. If this expectation continues, the ECB will end net purchases under the APP in the third quarter. However, the war in Ukraine has greatly increased uncertainty about the accuracy of future inflation and economic data in the Eurozone. The ECB therefore reserves the right to increase net purchases again if inflation expectations fall. However, in the current staff projections, it sees inflation rising sharply this year at 5.1% and normalizing toward the 2% target in subsequent years. The expected economic output was lowered to 3.7% for 2022 and remained virtually unchanged for the following years. The ECB stressed an increase in interest rates is only envisaged after the cessation of purchases in the APP. Previously, the period for this purpose was defined as “shortly after”; now it is defined as “some time after” net securities purchases ceased.

Vorige opmerkingen

  • 02/2022: The sharp rise in Eurozone inflation figures in recent months (5% 12/2021 and 5.1% 01/2022) seems to have left a lasting impression on the European Central Bank (ECB) council members. Although the ECB left monetary policy instruments unchanged at its last meeting on February 3 and expects inflation to cool in the course of 2022, Council President Lagarde stressed in her first response at the press conference that all Council members had been concerned about the high inflation figures and their impact in the short and medium term. Furthermore, an interest rate hike this year no longer seemed “very unlikely” to the Council President, after she had emphasized this several times at the last meeting. From the market’s perspective, this marked the beginning of the turnaround in the ECB’s interest rate policy, and the entire Euro yield curve rose accordingly. However, the escalation of the Ukraine crisis at the end of the month could lead to a delay in this monetary policy normalization. The ECB will provide further information on its future policy at its next meeting on March 10 at the latest.

  • 01/2022: The dominant topic in January was the expected future inflation in the Eurozone. 5% Eurozone inflation in December reinforced the expectation of many market participants that inflation would be higher in the future. This is then expected to prompt the European Central Bank (ECB) to raise key interest rates. In anticipation of this, the entire Euro yield curve rose, except for the very short end, which is firmly anchored by Euro excess liquidity and the -0.5% deposit rate. In January, there was no Governing Council meeting at which it could have commented on market expectations. However, more council members spoke up. They confirmed that current inflation is higher and may persist longer than initially thought but is still expected to level off in 2022. In the medium term, inflation is expected to fall back below its 2% target. Therefore, no corresponding measures are necessary at present. However, they also stressed that the ECB would use all measures if necessary. Further information on this will probably not be available until March, when the new staff projections on inflation are published.

  • 12/2021: The Governing Council of the European Central Bank (ECB) presented the new staff projections at its meeting on 16 December. The ECB sees a further recovery of the Eurozone economy. Due to the recent pandemic wave and the emergence of the even more contagious omicron variant, as well as the accompanying shortages of raw materials, services, etc., part of the economic recovery is postponed from 2022 to 2023. The ECB expects growth of 4.2% in 2022 (-0.4% compared with the September forecast), 2.9% in 2023 (+0.8%) and 1.6% in 2024. Annual inflation is expected to be 3.2% (+1.5%) in 2022, 1.8% (+0.3%) in 2023, and 1.8% in 2024. What is surprising here is the sharp increase in the inflation forecast for 2022. The Council sees the current increase as temporary. A large part of this is due to the rise in energy prices. In the medium term, however, inflation expectations remain below the ECB’s 2% target. Therefore, the Council decided to phase out the Pandemic Purchase Program (PEPP) at the end of March, as expected. At the same time, the purchase volume of the asset purchase program (APP) was increased by EUR 90 billion for 2022.

  • 11/2021: The European Central Bank (ECB) did not hold a Council meeting in November. However, there are some important monetary policy decisions coming up at the next meeting on December 16: The last tranche of the third targeted long-term tender (TLTRO III) is being issued and, as things stand, the Pandemic Purchase Programme (PEPP) expires in March. Both are important instruments for the ECB in its accommodative monetary policy. Whether they continue to offer long-term tenders, whether PEPP is extended or the existing purchase program (APP) is modified depends largely on the ECB's assessment of future medium-term inflation in the Eurozone. The new staff projections, which will be presented at the December meeting, will serve as the basis for this. However, the ECB does not see the current high inflation as sustainable and expects it to level off next year. Furthermore, the continuation of the ECB's current monetary policy is also supported by the sharp rise in the number of coronavirus cases and the associated closures in the Eurozone, with the corresponding negative impact on the economy, as well as the emergence of the new Omicron variant of the coronavirus.

  • 10/2021: Inflation in the Eurozone was the overriding theme at the European Central Bank’s (ECB) Governing Council meeting on October 28. The ECB has identified 3 causes in particular for the current high inflation in the Eurozone, which are based on the coronavirus pandemic and its effects: 1) Sharp rise in energy prices, which have caused a large part of the price increase. However, this development should calm down in the future. 2) The mismatch of insufficient supply of products and services to their demand. However, an increase in production by companies, as well as an easing of the coronavirus-induced demand congestion, should bring this back into balance. 3) Special effects to combat the epidemic, such as the VAT cut in Germany, which will no longer have any effect on the inflation calculation at the turn of the year. The ECB admitted that it had underestimated the current phase of higher inflation in the Eurozone. However, it maintains that inflation will fall again in the course of 2022 and that the medium-term inflation outlook still does not meet the requirements to exit from accommodative monetary policy.


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