ECB considers interest rate hike due to high core inflation

According to reports, President Lagarde of the European Central Bank said that the European Central Bank is likely to raise interest rates by 50 basis points i…

ECB considers interest rate hike due to high core inflation

According to reports, President Lagarde of the European Central Bank said that the European Central Bank is likely to raise interest rates by 50 basis points in March; The core inflation rate is too high, and inflation must return to 2%; It is believed that the overall inflation rate will decline in 2023; It is impossible to say how high the interest rate will rise; The economic recession in 2023 is not in the forecast of the staff of the European Central Bank.

ECB President: The ECB is likely to raise interest rates by 50 basis points in March

Interpretation of the news:


The recent announcement by President Lagarde of the European Central Bank (ECB) indicates that the institution is planning to raise interest rates by 50 basis points in March. This move comes in response to the rising core inflation rate, which has been a source of concern for the ECB. The institution is committed to returning inflation to 2%, which is viewed as a stable level. However, according to reports, it is believed that the overall inflation rate may decline in 2023.

While the ECB is taking measures to address inflation, there is no confirmation on how high the interest rate will rise. This uncertainty is due to the fact that the situation is still evolving, and the ECB needs to assess how the economy reacts to the current measures. The institution will be closely monitoring the economic indicators and market developments to determine the appropriate level of interest rates.

Additionally, the forecast by the staff of the European Central Bank indicates that there is no economic recession forecast for 2023. This is good news for the European Union, as the COVID-19 pandemic has caused significant economic disruption in the region. The ECB is optimistic about the recovery of the European economy, and this outlook has been confirmed by recent economic data.

Overall, the announcement by President Lagarde highlights the ECB’s focus on maintaining price stability and supporting the economic recovery of the European Union. By committing to raising interest rates in March, the institution is taking proactive measures to address inflation concerns. Moreover, the absence of an economic recession forecast in 2023 provides further reassurance that the European economy is on a path to recovery.

In conclusion, the ECB’s announcement highlights the institution’s commitment to maintaining price stability and supporting the European economy. While there is still uncertainty around how high interest rates will rise, the institution’s proactive approach to addressing inflation concerns is a positive step. The absence of an economic recession forecast for 2023 is also a promising sign for the economic recovery of the European Union.

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