Ülo Kaasik: Interest Rates Had to Be Raised to Curb Price Increases in the Euro Area
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8 Articles
Assessing recent developments, it is understandable why financial markets expect further interest rate hikes from the European Central Bank to ensure inflation returns to the two percent target within a few years, writes Ülo Kaasik.
An editorial by François Mathieu. When Christine Lagarde announces an increase in interest rates by pointing to the rise in energy prices, she enquiries...
Ülo Kaasik, a member of the Governing Council of the European Central Bank and President of Eesti Pank, writes that the conflict in the Middle East continues and this is raising energy prices; the European Central Bank therefore decided to raise interest rates on Thursday in order to bring the overall euro area price increase back to the two percent target.
With no other option, especially if inflation continues its upward trajectory, the European Central Bank's board of directors has high on its list of options to continue raising interest rates, especially if this is justified by the forecasts of independent analysts. On Thursday, the central bank's president, Christine Lagarde, kept her cards close for her next moves, although she hinted that the European economy can withstand higher interest ra…
European Central Bank officials expect interest rates to be raised again, with the possibility of a further increase by October, as quoted by Bloomberg, at a time when inflation rates still above 2% may require more monetary tightening. Sources said that policymakers' decisions will continue to be linked to the economic data received, while the post may be European central officials likely to further raise interest written in the Stock Exchange.
Officials of the European Central Bank (ECB) expect a further increase in interest rates, whereby a new increase could follow as early as next month, while inflation, which has remained above three percent, continues to be a reason for tightening monetary policy, according to sources familiar with the situation for Bloomberg.
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