Governor of the Bank of Spain, Pablo Hernandez de Kosshown in favor this Friday European Central Bank (ECB) to climb types between the officers 1% and 1.5% If inflation improves by the end of 2024 as the monetary authority expects it to do now. if prices continue negative surprises On the rise, he acknowledged that the official price of the coin may need to rise above this level. But he also stressed that it can happen, the economy worsened More than expected and the inflationary spiral deflates, which will give the ECB the right not to cut rates to 1%.
The position of the senior Spanish official is relevant because Debate at the ECB How much interest rates could be raised has long been clear and has been intensifying in recent weeks. In fact, his vice president, Luis de Guindosrefused to put a ceiling on that rise a few days ago. “How far can we go? I do not know. And if someone tells you, don’t believe it too much, because that’s something that will depend on the evolution of inflation,” he said.
In the same forum but a few days later, Hernández de Cos was very more openonce again showed signs of being one of its members. less orthodox and harsh When faced with the Positions of the monetary authority’s board, some of the toughest directors even bet to even the odds. about 3%.
In any case, the key is really what happens to inflation. The ECB had predicted a few weeks ago: will drop to 2.1% On average, by 2024, it will practically reach its medium-term goal (2%). According to Hernández de Cos, this will allow rates to be raised to their level. natural level or neutral, that is, not implying an expansionary or restrictive monetary policy: between 1% and 1.5%. So it remains to be seen whether inflation meets the ECB’s forecasts, but it should also be noted that other central banks have calculated the natural rate to be higher and therefore advocate more aggressive increases.
On the other hand, the governor spanish banking has capacitysufficient additional resistance” To deal with current economic risks. However, he warned entities that “the current context of uncertainty makes it necessary to act.” cautious meticulous monitoring of risks that may develop rapidly and force new tension scenarios to be considered.
Source: Informacion
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