The European Central Bank raised its key rate for the sixth time in a row

The European Central Bank (ECB) at today's meeting decided to increase the key rate by 22 basis points from March 50, raising it from 3 to 3,5%. This is the sixth increase in the key rate in a row, the previous one also raised it by 50 basis points. The regulator also increased the deposit rate by the same 50 basis points, now it is three percent. The rate on margin loans increased even more, reaching 3,75%

Continued tightening of the ECB's monetary policy is being pushed by the continued rise in inflation in most EU countries, in some of which this figure has reached double digits. At the same time, the regulator warned that high inflation will persist for a long time. Accordingly, today's rate hikes are likely to be not the last.

In a press release issued following today's meeting, the ECB predicts that the European economy will face some difficult times in the long term. The regulator intends to closely monitor financial indicators and make prompt decisions in order to stabilize the situation and prevent the economies of the EU countries from sliding into recession.

However, the ECB considers the fight against inflation to be a more important task, which it intends to return to the medium-term indicator of 2%. And this despite the fact that according to the data of the Statistical Office of the European Union (Eurostat), in February, inflation in the euro area may reach an average of 8,5%, which is higher than the forecast value. The highest rise in prices in February was recorded in the Baltic states: in Latvia, inflation was 20,1%, in Estonia 17,8%, in Lithuania - 17,2% in annual terms. The slowest price growth was in Luxembourg, where inflation in February was fixed at 5,5%.

The ECB forecasts inflation to average 5,3% in 2023, 2,9% in 2024 and 2,1% in 2025. Inflation excluding energy and food products, according to the regulator's expectations, will average 2023% in 4,6. Going forward, it is projected to decline to 2,5% in 2024 and 2,2% in 2025.

At the same time, the ECB, despite the serious problems of the second largest Swiss bank Credit Suisse against the backdrop of the bankruptcy of several American financial and credit institutions, claims that the eurozone banking sector is stable, has strong capital and liquidity.

Comments

[Maz]

Money will cost more and take less

[poquello]

Quote: Maz

Money will cost more and take less

the inability to take cheap money adversely affects business development

[Myths]

Business moves from Europe to America. Shells they hope they will be reimbursed by neighbors, naive. So they can raise their rates.

[Alex777]

Quote: poquello

the inability to take cheap money adversely affects business development

One gets the impression that the idea of ​​raising the rate from the States was thrown into the EU.

[Alex Nevs]

Grow a bucket of potatoes and eat 8 buckets. This is the robbery of someone else. And they shuffle empty buckets, and it doesn’t matter if it’s new or old and how much it costs.

[tralflot1832]

It's strange, like the European Union, but inflation is different everywhere, Western EU members are robbing the Eastern ones. Others can't explain it.

[poquello]

Quote: tralflot1832

It's strange, like the European Union, but inflation is different everywhere, Western EU members are robbing the Eastern ones. Others can't explain it.

Quote: Mitroha

And the USA robs them all, but the hamsters are happy about it

in, and there are not many beloved wives

[tralflot1832]

And most importantly, every wife is ready for anything so that the owner invites her to the hospital (white house, oral room), at least once a year.

[Leader_Barmaleev]

In Germany (Düsseldorf) you can’t buy a cup of coffee for one euro, in Greece (Janina) you can have a hearty meal in far from the worst cafe for the same one euro. The price of the euro in the EU has never been the same, which, by the way, the local crooks used very well. It's about the same as in the 70s in Vietnam, pineapples were - in the north a delicacy, in the south a weed.

[Monster_Fat]

Is it worth eating for one euro in Greece? Yah? Where are those prices? They can give you a glass of water for a euro, but no more, and, moreover, far from everywhere.

[mitroha]

Quote: tralflot1832

It's strange, like the European Union, and inflation is different everywhere, Western EU members are robbing the Eastern ones. Others can't explain it.

And the USA robs them all, but the hamsters are happy about it

[Alex Nevs]

Rather, the "pigs" were happy with a good fattening, and then the butcher came for another fresh one.

[Plate]

Before all this, I also read that in Europe there is such a problem - deflation. In Denmark, as part of the fight against it, the Central Bank generally kept a negative key rate. Not much less than zero, but still. It seems to be -0,5%. Commercial banks, of course, did not keep negative, as far as I know, but the situation was still clearly unhealthy.
I'm a little afraid that the current problems of Europe would not turn out to be problems, but a strict diet, after which fat will be lost, but bones and muscles will remain.

[kot423]

Quote from Mitos

Business moves from Europe to America.

Off topic, but very interesting, but will the gay Europeans, after their arrival, also kiss the feet of blacks? Or somehow not tolerant, they can bend cancer for the wrong arrival ...

[lestad]

Want them more inflation, want them higher rates

[blackGRAIL]

With all this, the key rate is 2 times lower than in Russia. No, of course it's good that the confrontation with Russia does not go unnoticed for Europe (even if they have less inflation).
The main thing in one sentence is not to compare our and their numbers. They also suffer and suffer losses, and already like their own are not so painfully perceived.
It will be bad if the United States can take advantage of all this and pull industry and brains over to itself.

[VLAD-96]

And still they can't catch up with us

[Kerensky]

intends to closely monitor financial indicators and make prompt decisions to stabilize the situation

I'll put it in my resume, it sounds ...

[AIK05]

Slowly, the pictures are sailing, you have to be so miserable, for the sake of the United States

[War Lord]

The European Central Bank (ECB) at today's meeting decided to increase the key rate by 22 basis points from March 50, raising it from 3 to 3,5%.

The key rate of the Central Bank of the Russian Federation today is 7,5%.
This means that loans in the Russian Federation are 2 times more expensive than in Europe.