Unable to cope with rising inflation, the European Central Bank is going to raise the key rate again to a record high

The European Central Bank published data on inflation in the European Union for September in annual terms. It turned out that these figures are five times higher than the target. At the same time, the forecasts of a month ago did not work either, when experts stated that by the end of September, inflation in annual terms in the EU would be 9,7%. It turned out - 10 percent. And at the beginning of the year, the forecast was 2%, and then it was called “pessimistic”. That is, they believed that inflation would be less than this indicator.

In Belgium, inflation topped 11,4% for the first time in nearly 50 years. In Austria, inflation rates are 10,5%, in Italy - about 9%, in Poland - 17,2%. The absolute record holders for inflation in the European Union are the Baltic countries. Thus, inflation in Latvia is 22,4%, in Lithuania - 22,5%, and in Estonia - almost 25%.

Against this backdrop, the ECB is actually making it clear that all of its previous measures to curb inflation have not been successful. And in this regard, the European regulator did not find any other solution than to raise the key rate again to a record high.

According to the latest data, the EU Central Bank is preparing to announce a rate hike by another 75 basis points. The upgrade is scheduled for October 27th.

In Europe, they find an excuse for the incredible inflation for the EU. In everything, of course, “Russia is to blame”, which “invaded Ukraine” and “because of which energy carriers have significantly risen in price.” And now the European bankers, at the cost of a record increase in the key rate (twice in a row), are "resisting Russia" - as best they can.

Whether this convinces ordinary Europeans of the correctness of the EU central bank is a big question. When they see price tags constantly changing upwards at shop windows, gas stations and growing interest rates on loans (to such values ​​that previously seemed impossible in Europe), their main question is: when will officials and economists take control of the situation and are they capable of doing it? in the current situation.

Comments

[mitroha]

The welfare of the Europeans does not concern us. 8 years of warning

[ruha]

Wouldn't have sponsored 404, would have lived in order. They screwed it up themselves, they came up with it themselves and they cry

[Monster_Fat]

Another funny thing is that for some reason such a practice has developed that the Central Bank should cope with the "growth of inflation". But this is a national problem, that is, to curb inflation, first of all, government actions in the financial, economic, social and political fields are needed. This is a complex problem and it is usually caused by the wrong actions of the government.

[Cayz kfgby]

It's too complicated, abstruse and long. Changing bets is faster and easier. And the main government does not lose anything politically - it's all the financiers and business to blame. Well, I think so.

[Zoldat_A]

Quote: ruha

Wouldn't have sponsored 404, would have lived in order. They screwed it up themselves, they came up with it themselves and they cry

Of course, we are to blame - who else?

Could, as in the 90s, quietly fall apart and be silent.
They could tolerate any rudeness and any robbery from them and, again, be silent.
They could endure the thieving Nazi Ukraine at hand, sooner or later becoming a springboard for a preventive nuclear strike on Russia. And be silent.

No, they are tired of enduring all this, "they entered into an open confrontation with the West." And what is just a "nightmare of nightmares" - they did not want to wait for us to be driven in formation "to the Gilyak". And suddenly and with all treachery they fell upon the white, fluffy and defenseless Ukraine.

And then it began. Because of us, of course.
We are to blame for the sanctions against ourselves, we forced the West to supply weapons and mercenaries to Ukraine. Even the transition to spot prices for energy carriers - that's how we shouted. that you can't do that! They will be worse. They didn't hear us. And, of course, we are to blame for the fact that they refused our "non-democratic" molecules and raised their own prices.
Well, and the crown of everything - the Anglo-Saxons cried, did not want to, but, having gathered their will into a fist, they blew up the Nord Streams.

In short, we are to blame for everything.
Get down, ... ... ... ... ... (terribly obscene), all against Russia. We have a wide neck - we can handle it.
And you just take a breath.

[rocket757]

Unable to cope with rising inflation, the European Central Bank is going to raise the key rate again to a record high

And sho ... nothing. This is just the beginning, and winter is coming!

[Plate]

Quote: rocket757

And sho ... nothing.

I have a fear that in the end Europe will only benefit from its inflation. I once read that in Europe there is a problem of the complete absence of inflationary processes. And in order to somehow move it forward, the Danish Central Bank even introduced a negative key rate (and, it seems, the ECB mentioned in the article did the same). Here you can imagine, right? Take out a loan and pay back less! All in all, it was an unhealthy situation. Now they will be worse there, of course. But no matter how it turns out, that in the end it will turn out not to be a crisis and a fall, but a shock therapy.

[rocket757]

Quote: Plate

in the end, Europe will only benefit from its inflation. I once read that in Europe there is a problem of the complete absence of inflationary processes.

Haven't you read how USUALLY they fight inflation?
Heard that usually RAISE THE KEY RATE!!!
Calculate ... I took a loan at a negative \ low rate, and I WILL HAVE TO GIVE AWAY at ... in general, STRONG, STRONG MORE!
And that's just one aspect!
I can, offhand, still five / dozen, list no less "pleasant" ones!
By the way, we already went through this ... I don’t want to remember, I can’t forget.
Somehow, it seems to me ... how will they do it, is that a question?

[Plate]

Quote: rocket757

Haven't you read how USUALLY they fight inflation?

This is how they usually fight it, as far as I know, how the ECB is doing it now: they raise the key rate, reduce business activity and generally slow down the pace of the economy.
Another thing is that, after thinking, I can assume that stagflation is starting in Europe. And you have to deal with it differently. And taking pills against inflation, Europe will only aggravate the situation. It's like feeling a pain in your head, taking an aspirin out of habit, and then finding out that there was internal bleeding, which you just made worse by drinking a fluid pill. A distant analogy, but I think it will fit.

Quote: rocket757

Somehow, it seems to me ... how will they do it, is that a question?

I do not know, but the problem, I think, is not of a financial nature. The rise in prices they popped after a reduction in the purchase of resources in Russia. Now they will raise the stakes to stop this, but by doing so, they will cut off their businessmen from purchasing resources elsewhere, albeit at a high price. In general, stagflation is a much more complicated issue than inflation.

[rocket757]

Quote: Plate

stagflation begins in Europe. And you have to deal with it differently.

Apparently, they are fighting, but everything happens with a minus sign.
In general ... wait and see if they are, if not at the beginning of the journey, then they still have to go to the finish line, go, crawl ....

[Plate]

Quote: rocket757

Apparently, they are fighting, but everything happens with a minus sign.

I have already expressed my opinion on this matter. Due to the fact that they are not fighting with it.

[Monster_Fat]

Inflation is of the classical type when the incomes of the population grow and prices rise accordingly, and there is "military inflation", when prices rise due to a decrease in the assortment, speculation of sellers due to a decrease in competition and the removal - the impossibility - of losing all control over the ambitions of speculators by the state. What is happening now is precisely "war inflation".

[rocket757]

Inflation due to greed, due to stupidity ... worst of all, when due to both, at the same time.
What do we have? What is theirs?
This is simple, without going into subtleties and nuances.

[Zoldat_A]

Victor, !

Quote: rocket757

I can, offhand, still five / dozen, list no less "pleasant" ones!
By the way, we already went through this ... I don’t want to remember, I can’t forget.

I'm not very good in terms of financial subtleties ... The sister of the chief accountant deals with both the company's money and family finances.
But even I understand how the key rate interacts with inflation. We remember the 90s, when the price tags in stores were rewritten twice a day.

Nafig-nafig again such "happiness" ...

[rocket757]

We are creeping, creeping ... they are trying to convince that this is just an "insignificant" price increase against the background ... but this is a question, against the background of what is the price increase WE ???

[Zoldat_A]

Quote: rocket757

against the background of what is the increase in prices WE ???

Yes, Victor, the word is - GREED. And market conditions, competition and other pseudo-market crap dictate we do not reduce prices, but growth.

A simple example.
According to the "faithful Gaidarovites" and "Chubaisyats", from whom we have not gone away since the 90s, the "invisible hand of the market" looks like this: three trade onions in the market, one has thirty rubles per kilogram, the others - 25. We were forced ( and Karl Marx says the same) that whoever has 30 will lower the price to 25 to increase demand.
In fact, those who have 25 raise it to 30. "They take it from a neighbor - they will also have it, they won't go anywhere." After some time, one of them thinks: "They take 30 each, and I will let them go 35 each. Everyone will think that I have a better bow than others. If they take it, they will not go anywhere." And the paragraph is repeated.

I have been going to the mini-market near my house for many, many years. Many sellers know me. Sometimes so, little by little, we chat. Of course, they don’t tell everything, but on the market the prices for the same goods are even (plus or minus 5-10%, but this depends on the quality of the goods). Collusion or not, but what I heard on the market is absolutely the second option that I gave.

Karl Marx was a good economist. And he wrote an amusing book - "Capital". Only now he was an economist, not a psychologist or a sociologist. Therefore, he did not take into account greed in his formulas.

[rocket757]

Well, yes, greed, turning into an absolute!
This is only in fairy tales, the market will interfere with everything, equalize everyone ... not in favor of the consumer, obviously.
Especially when the monopolization is in full swing and this is an objective reality, and not the fairy tales of the Vienna Woods.

[Zoldat_A]

Quote: rocket757

Unable to cope with rising inflation, the European Central Bank is going to raise the key rate again to a record high

And sho ... nothing. This is just the beginning, and winter is coming!

By the "minus" I see - the ukrobots woke up and do not believe that winter will still come.

[Alexander Salenko]

So for sure, the second time I plus, just in retaliation for them.

[rocket757]

Welcome
What is the joke???
Believe it or not, but winter will come anyway.
It is necessary to prepare for it in advance, and not jump under the howls / lamentations of the Kukuev figures.
Oh yes, also, sometimes it’s not useful to be photographed and rejoice when the background is so dumb.

[Cananecat]

inflation in annual terms in the EU will be 9,7%. It turned out - 10

0.3% isn't that big of a difference really. But the tribalts directly pleased ...

[Uprun]

As long as politicians rule the economy, it will be so ...., everything is mixed up in a bunch, people, horses ..... Business pays taxes on development, and politicians are doing everything to ruin this business .... while the EU rules gynecologists ...., no business, no taxes, one policy ....... Food is served .....

[Lukachevsky]

That-whether there will be, gentlemen Europeans! It's only the beginning! This is just the beginning, and the berries are yet to come.

[Sailor]

Freeze freeze wolf tail (c) kazka

[Murmur 55]

Come on, there’s their Joseph))) who Borell turned down saying don’t worry about the dough we have, so everything is the way for these in E. S. Sarcasm.

[tralflot1832]

The EU is a single economic space! Why is the inflation rate different for everyone? So the EU is not so unified. Someone is slowly robbing someone, there are no other explanations. Living on credit is not good.

[Vladimir80]

And what is 10% inflation? Yes, unpleasant and unusual, but you can live. Strikes will be held - wages will be raised, nothing special.
P.S. In southern Europe next week +24, people are sitting on the street in kafans, they don’t remember about winter

[Horon]

In southern Europe next week +24, people are sitting on the street in kafans, they don’t remember about winter

Do they not remember the industry either?

[Plate]

In southern Europe, perhaps they don't remember.

[Horon]

In southern Europe, perhaps they don't remember.

In the sense: before that, it wasn’t very good with her, but now you can forget it altogether?
But 24 degrees outside!

[Plate]

Interesting dependency. The warmer it is outside in the country in winter, the less they remember about industry there.

[Lukachevsky]

Quote: Horon

Do they not remember the industry either?

In Southern Europe, they have long forgotten what industry is. Have you seen a Fiat car for a long time? Or manufactured goods from Spain, Portugal and Greece? But Italy in the 60-70s was one of the leading and developed countries in Europe, not much inferior to Germany and France.

[Zoldat_A]

Quote: Vladimir80

In southern Europe next week +24, people are sitting on the street in kafans, they don’t remember about winter

One island will move to another - the British Isle will move to Sicily with the whole composition, sit in "kafans"? Will they leave the freshly molded beetle on the farm to guard the island?

Germany - just do it in Egypt will move. Rommel's maps in the archives will be dug up and moved. For cold weather.

[Lukachevsky]

Quote: Zoldat_A

One island will move to another - the British Isle will move to Sicily with the whole composition, sit in "kafans"?

The Angles' genetic memory should work, because the Kingdom of Sicily was founded by the Vikings, relatives of William the Conqueror, King of England.

[Zoldat_A]

Quote: Lukachevsky

The Angles' genetic memory should work, because the Kingdom of Sicily was founded by the Vikings, relatives of William the Conqueror, King of England.

Here I am about that.
The Verkhovna Rada didn't think of declaring the "independence of Ichkeria" on its own. They know who to follow. They will announce the "independence of Sicily", and then according to the Hawaiian scenario ...
As a result - in the south of Europe "British Taiwan". They will also sit on each other's heads in four floors - but it's warm.

[Vladimir80]

not to Egypt, but to Greece and Croatia, ask at your leisure who made the main investments in real estate in these countries over the past 20 years

[Alexander Salenko]

There is such a blogger, a Spaniard who speaks Russian, her blog "When you are Nuria", well, look how it was in her apartment when it snowed. The phenomenon is rare for Barcelona, ​​of course, but she has one battery for the whole apartment.

[Vladimir80]

Tell me in 2 words what happened to her: did she get a runny nose or did she spend 20 euros on warm shoes and a scarf? Or moved from sunny Barcelona?

[Alexander Salenko]

I don’t know about a runny nose, but the fact that I went in warm clothes at home is a fact. Just don't say it's not a problem.

[alexey_444]

There is too much money in the world (the West is being printed endlessly to live better, and the Chinese do not have time to fill these pieces of paper with goods), so they came up with a pandemic, broken logistics should have raised the prices of goods, there was no decrease in money, slipped Ukraine, and also reduced demand , but it won’t be enough for the campaign, it might even reach the bomb, it’s not for nothing that the West is constantly buzzing about it, on the thief and the hat is on fire, as they say

[VPK-65]

Due to the lack of cheap energy sources, the EU industry is massively moving to the states, which will now be really backed up by the Euro-wrapper rhetorical question - there is nothing more than speculative fraud on the financial exchange. So a "soap bubble" of the euro can be inflated, but it will inevitably burst.

[rotmistr60]

in Poland - 17,2% ... in Latvia it is 22,4%, in Lithuania - 22,5%, and in Estonia - almost 25%.

The most noisy-smelly ones are characterized by high inflation and at the same time demand new sanctions against Russia every day. Until now, the question is of interest - why do we continue to trade with the Baltic states and even with enthusiasm are the figures for the increase in trade operations? I want to remind you that Estonia, following Latvia, recognized Russia as a "sponsor of terrorism."

[Belopolyak]

In fact, inflation is higher, they lie like we do. For example, the French do not consider products for inflation and call all fluctuations seasonal (of course, there are also such, but they are fundamentally blind to the weighted average price for the year). I have relatives living there, and so, many products have risen in price by 60-150% (for example, they told me the prices of milk, eggs, meat, bread), there are practically no discounts on something good. Fuel, by the way, about 1,5 months ago, has noticeably fallen in price from the peak (in fact, it is generally more expensive, but not as much as it was at the end of spring and summer) 1,6 euros seems to be the last time they told me (may differ from the current ones), when it was at the peak about 2,5 mostly. Against this background, the communal price has risen the least.

[Dmitry Karabanov]

Let them take our Nabiullins-Siluanovs to their place - that's when the Europeans will really know what a "crisis" is!