Interest rates in the euro area have yet to rise "significantly" bringing financial conditions towards restrictive levels, because "inflation will not come down by itself".
This was stated by Isabel Schnabel, of the Executive Committee of the ECB, during a symposium in Stockholm organized by
Sveriges RIksbank
.
Price stability offers enormous benefits over time: it is the foundation of a healthy economy.
This was stated by Fed Chairman
Jerome Powell
, underlining however that restoring price stability could require unpopular actions.
Powell then reiterates that the Fed is focused on achieving the objectives of his mandate, and that monetary policy independence is important.
European stock market sluggish with fears about rates, little moved bonds
The European stock markets remain weak in mid-afternoon, discounting the inflexibility shown by some members of the Fed and the ECB in the fight against inflation.
Paris fell 0.8% ahead of London (-0.3%), Frankfurt (-0.3%) and Milan (-0.2%) after Isabel Schnabel said rates in the Eurozone must rise still "to a significant extent".
In New York, the silence on the monetary policy of the Fed chairman, Jerome Powell, causes a reduction in the losses of Wall Street futures, in trouble after two members of the board, Mary Daly and Raphael Bostic, had stressed the need to bring rates above 5%.
Small increases for the yields of government bonds in the Eurozone: that of the BTP rises by one point to 4.18% while the spread with the bund decreases by two basis points, to 192.