The European Central Bank (ECB) announced on Thursday that it is lowering its growth forecasts to 2.8% for 2022 and 2.1% for 2023, in a press release.
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The monetary institute also indicated that it would raise its inflation forecasts to 3.5% in 2023 and 2.1% in 2024. The ECB is keeping its key rates unchanged, but it has announced a first increase in its interest rates of 0.25 point "
in July
" to try to stem the galloping inflation in the euro zone, a historic turning point after more than ten years of rates at their lowest.
While the other major central banks have already begun tightening their monetary policy, the guardians of the euro "
intend to raise interest rates by 25 basis points at the meeting in July
", before "
another hike in September
,” according to a statement issued after a meeting of the Governing Council of the ECB.
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The ECB also announced that it was going to put an end to its net purchases of assets
on July 1
, a prerequisite before starting to raise its rates during the same month to fight against galloping inflation in the euro zone.
The institute will however continue to “
reinvest, in their entirety
”, the securities of its portfolio maturing, according to the press release.
These debt buyback programs launched in 2015 had made it possible to maintain favorable borrowing rates for households, companies and States, in a context of sluggish inflation.
