permanence inflationTo escape Rates up to 8.6% in the euro area and 10.2% in Spain in June forced the European Central Bank (ECB) undertake The first increase in the price of money in 11 years.
first idea 0.25 point increasehowever, the high levels of the consumer price index (CPI) mean that the board members who will decide today prefer a 0.50 point increase.
In any case, a new increase is planned for September as well. There have already been three hikes in the US. Federal Reserve, but the difference is that the increase in the general level of prices is due to the increase in demand. The problem is that it stems from supply in Europe, and it remains to be seen whether the rise in the price of money is the appropriate instrument and in any case preside over the ECB. Christine Lagarde is concerned about curbing demand and recession.
High yields in the US strengthened the dollar and brought it to par with the euro for the first time in 20 years. Markets are waiting for the policy implemented by the ECB.
For now, the rise in debt yields of peripheral countries, including Spain, prompted the central bank to urgently convene and announce measures to stop this evolution.
Inflationary pressure caused the 12-month Euribor, the main benchmark for mortgages in Spain, to rise above 1%. In April, he left the unfavorable terrain he was in six years ago.