Another Rate Hike - for Insurance: 5 Questions for ECB
- The European Central Bank is widely expected to hike interest rates by 0.25 percentage points on Thursday, erring on the side of caution as the U.S.-Iran war drags on, keeping oil prices elevated and inflation pressured.
- Eurozone inflation rose back above 3% in August due to higher energy costs; ECB economists found geopolitical tensions accounted for around 90% of energy inflation between January and May.
- Over 100,000 tracker mortgage holders will see repayments climb by around €14 for every €100,000 owed, as the ECB deposit rate lifts from 2.25% to 2.5%.
- Traders anticipate another move by December and one more next year reflecting energy costs, though economists reckon further rises are limited because they could hurt economic growth.
- Global borrowing costs gathered momentum recently on persistent government debt concerns, and State Street head of macro strategy Michael Metcalfe said the ECB is unlikely to act on bonds unless moves deviate from fundamentals.
40 Articles
40 Articles
The European Central Bank (ECB) is expected to raise the policy interest rate from 2.25 to 2.5 percent tomorrow. According to Chief Economist Bert Colijn of ING Netherlands, this step will have little impact on the economy. The ECB only truly slows down economic growth at a higher interest rate.
Concerns about rising inflation will be addressed by an increase in interest rates in the European Central Bank.
The foreseeable rise in interest rates by the ECB to 2,50 % today brings the Eurobor to 3,140 %.
It is almost certain that Christine Lagarde will announce interest increases to 2.5%. However, she must give little clues about what can happen next. Markets bet that increases do not stay here.
The Governing Council of the European Central Bank (ECB) will meet tomorrow to decide on the key interest rates for the euro area. Although financial market participants are absolutely certain that the ECB will raise them by 25 basis points at this meeting, the context for the decision is very fluid. The thickening fog of geopolitical uncertainty, irritated financial and unbalanced commodity markets, and renewed threats of stagflation significan…
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