The Limited Times

Now you can see non-English news...

Monetary policy: ECB Vice President de Guindos confirms increased pace of rate hikes


The deputy boss announces further and noticeable tightening measures. For Slovakia's head of the central bank, Kazimir, interest rates must remain high for a long time.

The European Central Bank (ECB) intends to raise its key interest rates further and noticeably in the coming year.

"We need to take additional measures to raise interest rates at a similar pace to the last 50 basis point hike," ECB Vice President Luis de Guindos said in Madrid on Monday.

The Spaniard thus reiterated statements made by ECB President Christine Lagarde last week

Similar statements came earlier in the week from the national central bank governors of Lithuania and Slovakia, Gediminas Simkus and Peter Kazimir.

Simkus said there was no doubt the ECB would raise interest rates again by 0.5 percentage points at the next rate meeting in February.

This was the extent of the interest rate hike last Thursday.

Higher for longer

Kazimir indicated that not only would interest rates continue to rise, but they would need to stay elevated for an extended period of time to bring high inflation under control.

"The current assessment of future inflation, which we do not see at target levels even in 2025, forces us to be very aggressive and I fully agree," said Kazimir.

It is impossible to say today how high the ECB will hike rates, Kazimir noted.

"Time and inflation will tell."

Source: faz

All news articles on 2022-12-19

You may like

Life/Entertain 2023-03-16T15:49:24.287Z
Life/Entertain 2023-03-16T16:19:13.719Z
Life/Entertain 2023-03-02T18:28:50.571Z

Trends 24h


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.