ECB hikes interest rate to all-time high

ECB president Christine Lagarde believes the current rate can make a ‘substantial contribution’ to taming prices.

It marked the 10th straight increase since the central bank launched the most aggressive hiking cycle in its history in July last year after energy and food costs surged following Russia’s invasion of Ukraine. Speaking after the rate decision was announced, ECB president Christine Lagarde stressed that rates had now reached levels that would make a “substantial contribution” to taming fast-rising prices.

Berenberg Bank economist Holger Schmieding agreed it was the final increase for now, and that the central bank had “signalled that it expects to be on hold from now onwards for a significant period of time”. Highlighting the continued difficulties in bringing consumer prices under control, the ECB raised its forecast for inflation this year and next.But it also slashed its forecasts for eurozone growth over the next three years, and Lagarde acknowledged the picture was worsening.“The risks to economic growth are tilted to the downside.”Recent data showed second-quarter growth reached just 0.

Politicians in more indebted eurozone economies, including Italy and Portugal, have been urging the central bank to take its foot off the gas.

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Markets increase bets on ECB rate hike this week, European yields riseLONDON, Sept 13 — Traders ramped up bets for an ECB rate hike this week, sending Italy’s 10-year bond yield to a six-month high after a Reuters report that the European Central...
Source: malaymail - 🏆 1. / 86 Read more »

Wall Street mixed after inflation data as European bourses dip ahead of ECBNEW YORK, Sept 14 — Wall Street stock indices moved in opposite directions Wednesday after a mixed inflation report as European bourses dipped ahead of a European Central Bank...
Source: malaymail - 🏆 1. / 86 Read more »

ECB considers lifting rates to record high even as economy slowsFRANKFURT, Sept 14 — The European Central Bank is set to decide on Thursday whether to raise its key interest rate to a record peak in what should be its final step in the fight...
Source: malaymail - 🏆 1. / 86 Read more »

ECB considers record-high rate hike even as economy slowsDespite nine rate increases, prices remain well above the 2% target and show no signs of slowing.
Source: fmtoday - 🏆 5. / 72 Read more »

Dollar hovers below 3-month high to euro as ECB decision loomsA rate increase could trigger a momentum shift, relegating the greenback as the euro gains traction.
Source: fmtoday - 🏆 5. / 72 Read more »

Markets await US CPI test, surging oil adds to price jittersThe ECB’s updated inflation forecasts of above 3% next year further complicate the interest rate outlook.
Source: fmtoday - 🏆 5. / 72 Read more »