The range in which they are located is the highest since November 2008and the institution intends to continue raising them “substantially at a constant rate” although it will “evaluate” this policy in March, he said.
The head of the ECB, the former managing director of the IMF, Christine Lagarde, He maintained after the update of the rate was known that the entity expects growth to remain weak, since the level of rates can affect production and spending, due to the increase in cost that they imply for credit.
“In view of underlying inflationary pressures, the Governing Council intends to raise interest rates another 50 basis points at your next meeting March“, declared the ECB.
“We still have a long way to go, we know that this is not over,” said Lagarde, after insisting on the ECB’s commitment to “stay the course” of monetary tightening.
The institution’s statement also leaves the open door to all options and indicates that future decisions “will continue to be data driven.”
Lagarde also emphasized that she believes it is necessary to start withdraw fiscal support measures since, he considers, they can increase inflationary pressure, which in the future would demand more forceful actions from the ECB.
He also warned that the employment creation it could slow down and unemployment could even increase in the new scenario in which the region is entering.
However, he stressed that the stress generated by the bottleneck that occurred in the supply chain are gradually easing, that the prices of the energy They also began a slowdown process, which would reduce pressure on cost dynamics and raise them salary will compensate for the loss of purchasing power.
After the ECB announcement, the euro it contracts 0.5% and reached 1.0932, leaving behind the maximum reached this morning.
The Bank of the common area made decisions in the same direction as its British and American peers, which once again adjusted rates to reach their inflation targets, which are around 2%.
Source: Ambito
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