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Finnish Central Bank Governor Olli Rehn is the latest ECB official to push for an ECB deposit rate hike in July.
(Boursier.com) – With the US Federal Reserve and the Bank of England ramping up their monetary tightening in the face of rising inflation, more and more European Central Bank officials are calling for the institution to also begin the process of raising interest rates, at its meeting in July, or even sooner.. .
like this day Finnish Central Bank Governor Olli RehnHe declared himself in favor of raising interest rates for the first time at the European Central Bank’s July 21 meeting. Mr. Ren felt it The European Central Bank is expected to raise the deposit rate, currently set at -0.5%, by a quarter point at its July meeting.
In an interview with the Finnish daily Helsingin Sanomat, Olli Rehn, a member of the ECB’s Governing Council said: “In my opinion, it would be reasonableIncrease the deposit rate by 0.25 percentage points in July and by the fall to zero. After that, we can continue to normalize monetary policy in a gradual and proactive manner.
On Tuesday, an influential member of The Executive Board of the European Central Bank, German economist Isabelle Schnabel, estimated in an interview with the German newspaper Handelsblatt, that “under the current conditions, it is possible to raise the interest rate in July”. On April 21 Governor of the National Bank of Belgium, Pierre WinchThey considered a “clear” rise in the deposit rate to zero, or even a slightly positive basis, by the end of the year. He said he was in favor of the first round of bolts in July. Germany’s Joachim Nagel, Spain’s Luis de Guindos and Latvia’s Martins Kazak All three have also felt in recent weeks that a rate hike was possible at the July 21 meeting.
“The Hawk” Robert Holzmann wants to act as early as June
from his side, Robert Holzmann, President of the Austrian Central Bank, was more “tight” on Thursday, considering the June rate hike. Asked about this possible increase at an event in Salzburg, he replied, “We plan to do it (…) We will discuss it at our meeting in June, and maybe we will.” Mr. Holzmann, the ECB’s most “hawkish” member of the Governing Council, has repeatedly spoken out in favor of starting the ECB’s monetary policy normalization.
for European Central Bank President Christine Lagardeelle a indique le 21 avril que les questions importantes seraient disccutées lors de la réunion du 9 juin, et laissé entendre qu’après la fin des achats d’actifs, “probablement en juillet”, une première hausse intersir tauxit europa a period of time”.
Eurozone inflation reached 7.4% on an annual basis in March, the highest level since the creation of the single currency, leading several European Central Bank officials to demand a faster end to the purchasing programme. Central bank bonds, in preparation for raising interest rates.
The Federal Reserve and the Bank of England are maneuvering in the face of higher rates
On Wednesday, the US Federal Reserve raised its key interest rate by half a point (50 basis points) to between 0.75% and 1%, and added that more gestures of monetary tightening would be “appropriate” in the coming months in order to combat inflation. March in the United States. The Fed has also detailed the schedule for reducing its balance sheet, which will begin gradually from June 1.
On Thursday, the Bank of England (BoE) also continued its bullish cycle, with interest rates rising a quarter point to 1%, the highest level since 2009. The Bank of England has estimated inflation could reach 10% this year in the UK, and it expects Now a recession in 2023 (-0.25% of GDP), versus growth of 1.25% previously projected.
“Global inflationary pressures intensified sharply in the wake of the Russian invasion of Ukraine. This has significantly deteriorated the outlook for global and UK growth.”
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