2023-07-17 20:28:00
Hoy 17:28
He European Central Bank will increase borrowing costs a peak of 4% in Septemberaccording to a survey of economists who are increasingly adopting a hawkish tone as inflation remains stubborn.
Such a result would mean two more movements of a quarter point, starting with one on July 27. Analysts polled by Bloomberg had previously forecast the deposit rate to peak at 3.75%.
Alberto Fernández signed an energy cooperation memorandum with the European Union
Why the European Central Bank would validate a rate hike
Behind his change of opinion there is a worsening inflation outlook. Although price increases in the eurozone will moderate in the coming months, it will not be as fast as expected. Also, now inflation in 2025 is expected to be 2.1%compared to the previous 2%.
Core price growth – the focus in Frankfurt, although headline inflation is subdued – is expected to be slightly lower this year than before. But projections for 2024 and 2025 have risen to 2.8% and 2.4%. This last number exceeds the ECB’s own projection for that year.
The results come now that the debate in the ECB on the end point of its streak of unprecedented increases is intensifying. Some authorities refuse to rule out an extension of the campaign beyond the summer, although several are concerned regarding the economy, which has struggled to get out of the mild recession it fell into over the winter.
The gaze of the authorities of the European Central Bank
“Monetary policy has already done a lot,” Slovenian central bank governor Bostjan Vasle said on Monday. “We are prepared to do more if necessary,” he told an event at the ECB in Frankfurt, stressing that other policies must also contribute.
The monetary policy authorities are opposed to talk of a hard landing and analysts agree, forecasting gains of 0.2% in gross domestic product in each quarter following the first and maintaining their outlook for growth of 1% and 1.6% in 2024 and 2025.
Despite this optimism, they project the first interest rate cut to come in April 2024.
1689626222
#European #Central #Bank #raise #rates #maximum #September
