The situation in the financial markets has calmed down compared to the intense turmoil that accompanied the March meeting.
He European Central Bank (ECB) is likely to slow the pace of its rate hikes on Thursday, a quarter point percent, because their previous increases are already reaching the real economy.
The Governing Council of the ECB meets to decide what to do with the interest rates at a time when the situation in the financial markets has calmed down compared to the strong turmoil that accompanied the March meeting.
The Headline inflation increased in the Eurozone in April a tenth compared to March, up 7% yoy, but the core, which discounts energy, food, alcohol and tobacco because they are more volatile, fell a tenth, to 5.6% , the first drop in several months.
The ECB released data this week showing that corporate lending slowed in the first quarter and that demand for corporate loans and mortgages has declined.
Banks also foresee a further strong drop in demand in the coming months.
The ECB started raising its interest rates in July last year and has been raising them ever since. six consecutive timesfrom 0% to the current 3.5%.
The US Federal Reserve raises interest rates by 0.25 points
The US Federal Reserve, for its part, also announced a rate hike of 0.25 points yesterday. This new increase places the rates between 5 and 5.25%. The Fed has not announced whether it would be its last hike.
Source: EITB
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.
