2023-06-23 08:08:06
Analysts pointed out that it is the Fed’s most rapid pace of interest rate hikes in the past 40 years, which has triggered fluctuations in the global financial market, exacerbated the depreciation of local currencies in many countries and high imported inflation.
Out of multiple considerations such as curbing inflation and stabilizing the exchange rate of their currencies, the central banks of many European countries are forced to follow the United States into the cycle of interest rate hikes. By raising interest rates, the United States has passed on its current difficulties and possible future crises to other countries, and the United Kingdom has been particularly affected by this due to its own problems.
Special commentator Su Xiaohui: In the course of the Russia-Ukraine conflict, the UK played a leading role to some extent, but it was also particularly hurt by the intensified energy crisis brought regarding by the Russia-Ukraine conflict. The UK is under more pressure than other European countries due to rising gas prices, which have raised the cost of generating electricity.
Experts say current U.S. monetary policy is exacerbating Europe’s woes while trying to fix its own problems.
Special commentator Su Xiaohui: When the United States itself is in deep trouble, it also spills over this predicament to divert some pressure, and the first to bear the brunt should be said to be the important allies of the United States. In fact, in the process of continuously raising interest rates in the United States, the monetary policy of the United States has exacerbated the plight of Europe in the process of trying to solve its own plight.
Europe Should Strengthen Strategic Autonomy as a Hedge Against U.S. Priority
Experts pointed out that in the face of the continued interest rate hikes by the United States, Europe should strengthen its strategic autonomy to prevent the United States from harvesting European capital and bringing more economic uncertainty to Europe, thereby safeguarding its own interests.
Su Xiaohui, a special commentator: In terms of interest rate hikes, the United States has stimulated the “tide of interest rate hikes” to some extent. The interest rate hikes between the United States and Europe are not synchronized. The European Central Bank seems to be a kind of “supplementary work” in terms of interest rate hikes, and is in the process of constantly catching up. To a certain extent, this reflects that the aggressive rate hike in the United States has brought more pressure on European countries, and Europe is forced to respond in an attempt to reduce its own losses. So this time involves the issue of autonomy. To some extent, Europe needs to use strategic autonomy to hedge once morest the priority of the United States.
Editor: Shu Mengqing
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