2023-07-24 06:47:06
The European Central Bank is expected to raise its key rates once more on Thursday in the face of inflation deemed still too high, despite discontent in some countries once morest the risk of weakening the economy.
A year following kicking off the fastest rate hike cycle in history, the euro’s guardians are staying the course, even as the peak appears to be getting closer.
ECB President Christine Lagarde already announced in June a “very likely” further increase for Thursday’s meeting of her Board of Governors.
“Virtually everyone expects an increase of 0.25 percentage points,” like in June, said Joachim Nagel, director of the influential German central bank, said last week.
This would bring the bank liquidity deposit rate at the ECB, which refers, to 3.75%.
After that? The interest of the meeting “will rather focus on the indications that the ECB might give on the future direction of monetary policy”, according to Eric Dor, director of economic studies at the IESEG School of Management. With the September meeting in sight.
To fight once morest record inflation in the euro zone following the post-pandemic recovery and then the outbreak of the Russian war in Ukraine, the ECB has since last July raised its key rates at unprecedented speed, raising them by 400 basis points in one year.
1690186690
#Rates #ECB #rise #criticism
