European Central Bank, 7left open the possibility of an additional rate hike in the month
The European Central Bank 7said at its monetary policy meeting in the month that it could raise interest rates further while keeping all options open. This could have an immediate impact on eurozone prices and financial markets, drawing investors’ attention.
![European Central Bank, 7possibility of an additional rate hike in the month left open/blog-images/gen-dabc570e-aa65-4411-a5a5-84e98ecdfd2e.avif)
The European Central Bank 7said it could raise interest rates further at its monetary policy meeting in the month. The possibility of this decision could have a direct impact on eurozone prices and financial markets.
Joachim Nagel, president of the Bundesbank and a member of the ECB Governing Council, 6in the month 12said by email on the day (local time) that 7all policy options had been left open at the monthly meeting. He assessed that rising energy prices were gradually spreading to other price categories.
The ECB raised its deposit rate the previous day 2.0from % to 2.25%.
The increase was 0.25percentage points, and this rate hike is the first since 2023.
Nagel said the supply shock triggered by the war in the Middle East had turned out to be strong and persistent. He said it was important to clearly demonstrate the central bank’s resolve so that inflation expectations would not become unanchored.
Markets are divided over the possibility of an additional hike in 7. Some investors believe a further increase will materialize if energy prices rise further or core inflation, which excludes food and energy prices, proves stronger than expected.
Others say that growing concerns about an economic slowdown could make it difficult for the ECB to continue raising rates rapidly. The ECB’s next decision will be based on developments in energy prices and core inflation, as well as economic indicators.
Sources: 뉴시스 경제
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