The authorities of the European Central Bank anticipated that they will apply two new increases in interest rates given the inflationary context. How much will they be?
He European Central Bank (ECB) fulfilled his 25 years of life this Wednesday and he had to celebrate them in the middle of a strong battle against inflation that he is carrying out in Europe. Likewise, the news was released this Thursday that Germany, the main economy of the Old Continent, entered a technical recession, according to the latest data. In this context, the authorities of the community monetary regulator made statements regarding the prospects for their rate policy going forward.
He ECB need “at least” two more increases in interest rates, of 25 basis points eachKlaas Knot, a member of the ECB’s Governing Council and head of the Dutch central bank, said in an interview on Thursday.
When will rates go up in Europe?
I believe that “our analysis will point to the continuing need for at least two increases more than 25 basis points. But I am totally open to what happens after the (boreal) summer,” Knot told a group of newspapers, including Italy’s Corriere della Sera.
Arguing that heMarkets are “overly optimistic” about future rate cutsKnot stated that “I think that when we have reached the maximum of the rates, we will have to stay there for quite a while.”
Source: Ambito
