ECB Raises Interest Rates: The bank raised rates by 0.25 percent due to strong inflation. ECB rates rose 0.25 points. To avert a downturn, the bank must stop raising rates. Experts say the three most important interest rates have not changed since European property values plummeted. The ECB’s overnight savings rate of 3.75 percent equals 2000–2001 best rate of 2%.
She said, “We really want to stop inflation, and we will do whatever it takes to make that happen.”
Large loans from the ECB cost 4.25%. 20-year high. June Eurozone prices fell 10.6% and 5.5%, respectively. Christine Lagarde says “data” will influence ECB interest rate hikes. Rates may climb.
In Frankfurt, Lagarde said the ECB would keep rates low until Spain and the Czech Republic had 9.9% unemployment. June food costs jumped 13.4%. German prices grew 6.7%. The ECB doesn’t understand growing Eurozone prices and GDP.
Lagarde expected further spending if Russia and Ukraine intensified. Russia abandoning the Black Sea grain pact might hike food and energy prices. However, declining European countries like Germany concern citizens about job loss. The Kiel Institute’s Moritz Schularick claims the ECB has controlled inflation. It is 50% lower.
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Risk management tracks how interest rate changes affect the economy. Plan ahead.
Big companies’ stocks are at a 15-year high. Eurozone inhabitants predict 2% rise without additional hikes.
Titan Asset Management foreign currency salesman Alex Livingstone said the European Central Bank (ECB) raised interest rates by 25 basis points to 4.25 percent today. Similar Fed actions affected this decision. The ECB claimed stricter credit requirements made borrowing money harder. ECB data shows prices decreasing. It shocked many.
Deflation boosts the economy. Capital.com market specialist Daniela Hathorn stated, “The ECB decided to raise interest rates, just as we had predicted.” The essential words show that certain obnoxious advertisements have been removed.
Next week, the BoE may hike the base rate to 5.25 percent Rates may climb.