At its meeting on 26 October, the governing council of the European Central Bank (ECB) ended its streak of 10 consecutive interest rate hikes, leaving its deposit rate at 4 percent, its highest since the euro currency was launched on 1 January, 1999.
Inflation in the Eurozone is stuck at too high a level and wage growth is keeping upward pressure on prices, Christine Lagarde, president of the European Central Bank (ECB), said in a speech last week at the annual meeting of the International Monetary Fund in Morocco.
The European Central Bank (ECB) has begun thinking about how it might use AI to interpret inflation’s dynamics more accurately and to supervise commercial banks, The New York Times reported.
The European Central Bank’s (ECB’s) decision last week to signal that its interest rate may now have peaked was not unanimous.
On 14 September, the European Central Bank (ECB) raised its key interest rate for the 10th time in as many meetings, bumping it by a quarter point to an even 4 percent, the highest since the euro currency was introduced in 1999.
Slowing inflation in the Eurozone’s two largest economies have raised hopes that the European Central Bank (ECB) will not raise interest rates again when it meets in September after it raised its key rate by another quarter point on 27 July.
As the U.S. Federal Reserve did a day earlier, the European Central Bank (ECB) added a quarter point to its key interest rate on 27 July, bringing it to 3.75 percent. It began raising the rate in July 2022, when it was -0.50 percent.
In July, inflation across the 20 countries sharing the euro currency edged down to 5.3 percent from 5.5 percent in June, reaching its slowest pace since January 2022, and the area’s GDP expanded by 0.3 percent in the second quarter.
The European Central Bank (ECB) raised its base interest rate a quarter point on 4 May after making six consecutive half-point increases since embarking on its current campaign of tightening in July last year.
As we reported back in May 2021, as prices began to rise, Christine Lagarde, president of the European Central Bank, waved away critics’ concerns, saying that inflation in the Eurozone was only temporary and less of a danger than it was in the U.S.