this European Central Bank (ECB) keeps its foot on the accelerator in its fight against the spiral inflationist. The governing council returned this Thursday raise rates Official interests of the eurozone 0.75 percent pointswhich is the reference rate for financing households, companies and households. stays at 2% (highest level since January 2009). fees mortgage new loan rates will therefore continue to climb, which started at the end of last year.
The monetary authority agreed It is expected to repeat the extraordinary rise expected by the market and analysts.ue already applied last September. It later increased the rates by 0.75 points. Highest increase in the 23-year history of the institution. At the end of July, the organization headed by Christine Lagarde started to increase the price of money with an increase of 0.5 points. first in 11 yearsThe biggest in over two decades, and twice what he expected at the June meeting.
In addition, the central bank raised interest rates. interest paid to banks to save money 1.5%After starting in September to pay them for the first time since December 2011, draining liquidity promoting the economy and assets pay deposit your customers. They will not be final downloads. Lagarde warned in September that the ECB was planning to continue. make money more expensive at the next one to three meetings of your council (October, December and February).
without ceasefire
Thus, the central bank, which started to increase interest rates, later than other central banks such as Federal Reserve American must submit an application accelerated rise before a inflation increase like its counterparts in other countries, it branded it as a temporary phenomenon in 2021. However, the invasion of Ukraine carried the price increase beyond all expectations and no respite to monetary authorities.
this Eurozone CPI reached in september 10. all-time high The last 11 months, up from 9.1% in August at 9.9%. In September, the ECB revised its inflation forecasts “significantly higher”. guess now 8.1% on average in 2022It is 5.5% in 2023 and 2.3% in 2024, compared to 6.8%, 3.5% and 2.1% calculated in June. prices, so get away from your goals (2% in the medium term) at the end of the three-year scenario on which it bases its decisions.
stagnation drums
this economic activity suffers Consequences of inflation and interest rate hikes. despite unemployment Eurozone’s lowest level (6.6% in August) and GDP continues to grow (0.8% in Q2 vs. previous year), some leading indicators activities of different economic sectors. contraction. In its July forecasts, the ECB calculated that the euro area economy would grow 2.8% this year and 2.1% next year and in 2024, but in September 3.1%, 0.9% and 1.9%respectively.
And this is center stage. Inside negative (Includes total cutoff of gas supply from Russia and other suppliers and apportionment in energy consumption), GDP next year recession (2.8%, -0.9% and 1.9%).