2023-10-25 16:21:19
The President of the ECB, Christine Lagarde. Christoph Hardt/IMAGO/Panama Pictures via Archyde.com Connect
DECRYPTION – The European Central Bank is expected to maintain its deposit rate at 4% on Thursday, while the European economy is in a sharp slowdown.
For the first time since July 2022, the Governing Council of the European Central Bank (ECB) is expected to opt for the status quo, during a decentralized meeting in Athens this Thursday. After ten consecutive increases, which brought its deposit rate from -0.5% to 4% in record time, the time for the “pause”, as the term goes, seems to have come.
At the last monetary policy meeting, in mid-September, some of the big financiers had already pleaded not to raise rates. The hardliners had finally won. A consensus should emerge this time to do nothing, while leaving the door open to further rate increases in the months to come if necessary.
Among the arguments pleading for a wait-and-see attitude, signs “encouraging» on inflation, according to Isabel Schnabel, member of the ECB executive board, are recorded. The average price increase in the euro zone reached 4.3% in September, compared to 5.2% in August and double…
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