Abstract:The European Central Bank says a rate hike may take longer than expected.
The European Central Bank says a rate hike may take longer than expected.
This announcement was made by Central Bank (ECB) policymaker Peter Kasimir on Monday sayimg that the ECB may have to raise interest rates longer than expected and that September could be. The earliest time a policy maker can determine whether Are recent interest rate hikes effective?
The ECB has raised interest rates seven times in a row to deal with record highs in consumer prices, the report said. And policy makers have signaled that interest rates will continue to be raised. While inflationary pressures continued to rise.
Nevertheless, the ECB raised interest rates at a slower rate of 0.25% last week. It was the lowest rate hike since the tightening of monetary policy began in July last year, with the ECB arguing that recent policy rate hikes are starting to hurt the economy. It takes time to assess whether it will help drag down inflation or not. and overall inflation has peaked.
Mr Casimir said in a weblog that “Considering last week's data, We need to raise interest rates longer than expected. By raising only 0.25%, it is a step that allows us to gradually raise interest rates for longer. if necessary”
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