Bureau plans end of debt purchases and another rate hike in September
The European Central Bank (ECB) announced on Thursday the end of debt purchases and a 0.25% interest rate hike, which it will approve at its board of directors meeting in July. The entity has concluded that the conditions are in place to end the debt purchase next month and begin the rate hike in the Eurozone. It also anticipates a second rate hike in September.
High inflation means the ECB recognizes the need for a “gradual and sustained” rate hike after September. The agency will make a decision on this later, when it has more information, with the aim of lowering inflation to 2% in the medium term. According to current forecasts, prices will continue to rise to 6.8% this year, due to the high price of gas and food. The situation will improve in 2023, when the ECB calculates that inflation will fall to 3.5% and to 2.1% in 2024.
The economic disruptions caused by Russia’s invasion of Ukraine “continue to be a burden” for Europe, with the lack of materials and the high price of energy and basic necessities. These factors will impact consumer confidence and economic growth, but the ECB expects the eurozone to continue on the positive path it embarked on after the worst moments of the pandemic. For example, it estimates that GDP will grow by 2.8% this year and 2.1% in the next two years.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
