The ECB advisers see the ground prepared for a change in trend in interest rates

ANIn view of the high level of inflation, the debate in the European Central Bank (ECB) about raising interest rates is gaining strength. As can be seen from the minutes of the March meeting of the ECB Governing Council, which were published on Thursday, the conditions for an increase were discussed internally. It was argued that the prerequisites for this were either largely met or very close to being met. A large number of monetary authorities spoke in favor of taking further steps towards normalizing monetary policy.

The latest statements from the central bankers dovetail with this: in Bundesbank President Joachim Nagel’s view, the ECB could quickly initiate a turnaround in interest rates. Several currency regulators have pointed to September as the date for discussion. Driven by a rise in energy prices as a result of the Ukraine war, inflation in the euro zone rose to 7.5 percent in March. The ECB points to 2.0 percent in the medium term. It meets next Thursday for its next session. Monetary regulators want to end their multibillion-dollar bond purchases in the summer if the inflation outlook allows.

The closure of the bond program is seen as a signal of a change in interest rates that will start “some time” later. Various currency watchdogs are urging that this be done quickly. However, the fallout from the Ukraine war is hampering the ECB’s decision-making. High energy prices and far-reaching Western sanctions against Russia are weighing on growth. According to the vice president of the ECB, Luis de Guindos, the euro zone is facing an economic recession in the short term.

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