Vice President of the European Central Bank (ECB), Luis de GuindosThis Thursday came to confirm that the monetary authority will raise it once again. interest rates 0.25 point reference At their next meeting on 15 June. “Last month it was already 25 basis points and I undoubtedly believe this is the new norm for the future,” he told RNE in an interview. Your message is in line with market expectations. They forecast a two-quarter point increase in June and July.both the main type (currently at 3.75%) and the ease of deposits (the interest with which the money you save in banks is paid back, the most relevant in the current context, 3.25%).
The former Economy Minister also insisted that the end of the rate hike cycle that began in July last year, in line with market forecasts, is near, while denying that there are major inconsistencies in the European Central Bank’s (ECB) recommendations. Subject. “There is always a very high consensus. Now the perception is Most of the rate hike path has been completed and the last part is left., last stretch. “The amount and number of climbs for this final stage will depend on the data we get, but most of the way has already been covered.”
The head of the organization, Christine Lagarde, voiced the same line at a conference in Germany. “Imagine an airplane climbing to cruising altitude. At first the airplane must climb steeply and accelerate quickly. But as the target approaches altitude, it can slow down and maintain its current speed. The airplane must rise high enough to reach its target, but not high enough to exceed it,” he said. used as an example.
The senior French official underlined that the interest rate hikes have already significantly tightened the financing conditions of the Eurozone. there is still an “important adjustment” to be made due to the time it takes for rate increases to take full effect. Guindos, on the other hand, made it clear that the period of low and negative rates before the inflationary spiral will not return. Interest rates will be at relatively positive levels in the next 3-4 years. What happened in the last 10 years will not come back, at least in the short and medium term.”