Goldman’s change in expectations comes after Friday Elizabeth Schnabelmember of the Executive Board of the ECB, and François Villeroy de Galhau, president of the French central bank, made hawkish comments about the bank’s monetary policy.
Joachim Nagel and gabriel makhloufThey also stated that you wouldn’t be surprised if interest rate hikes keep going up in it second quarter. These sayings come after the two hikes planned for February and March.
The Markets expect ECB rates to peak at 3.7% at the end of the boreal summer.
The President of the European Central Bank (ECB), christine lagardeassured that it is the intention of the organization increase interest rates again by 50 basis points at the March meeting. This is the same raise as the one executed in the previous meeting, held at the beginning of February.
“In view of underlying inflationary pressures, We intend to raise interest rates by another 50 basis points at our next meeting in March, and then we will assess the further trajectory of our monetary policy.”assured during his speech at the plenary session of the European Parliament.
Lagarde has pointed out that “keep interest rates at restrictive levels over time will reduce inflation by curbing demand and it will also protect against the risk of a persistent increase in inflation expectations.”
inflation in the euro zone fell for the third consecutive month and posted 8.5% in Januarysupported by a slowdown in energy prices.
The ECB’s goal is for annual inflation to be 2%. Lagarde confirmed that his objective is to resume the path of that goal.
Source: Ambito
