ECB Saw a Future Hike as Likely at July Meeting
Policymakers said inflation near 3% and war-related energy risks could require borrowing costs to rise again to 2.50%, possibly in September.
- European Central Bank policymakers are widely expected to raise borrowing costs in two weeks, with officials describing July's rate hold as merely a "pause" in their tightening cycle.
- With euro-area inflation hovering around 3 per cent, far exceeding the 2 per cent target, the ECB discussed whether "mildly restrictive" monetary policy could be needed to restore price stability.
- Hawkish Executive Board member Isabel Schnabel warned that the Iran conflict in the Middle East and robust growth fuel inflation risks, while colleague Piero Cipollone cautioned against excessive tightening to avoid harming the economy.
- Sources told Reuters that governors are prepared to raise the policy rate again, as "While decisions remained data-dependent, another rate hike would likely be necessary" unless inflation improves significantly.
- Data released Thu showed banks increased corporate lending at 4.4 per cent, suggesting the euro zone economy is showing "signs of resilience" despite ongoing efforts to rein in price hikes.
13 Articles
13 Articles
The inflation rate in Europe is rising again – and this is an increase in concern about higher credit costs for homebuilders. In August, inflation in France and Spain increased significantly. This increases the pressure on the European Central Bank (ECB) to raise its key interest rate again in September.For people who want to borrow from housing, this could increase the cost of financing a home again.In France, consumer prices rose by an average…
The leaders of the European Central Bank (ECB), at their monetary policy meeting last month, considered that they would probably need to increase interest rates once again to contain the consequences of the war in the Middle East, as demonstrated by the record of the meeting released on Thursday (27). The ECB kept interest rates unchanged at the meeting on 22 and 23 July, after holding a monetary squeeze for the first time in almost three years …
Coverage Details
Bias Distribution
- 57% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
