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and studying European Central Bank At the present time, the possibility of raising interest rates by 0.5% (or 50 basis points), which is double what was announced by the President of the Bank Christine Lagarde last month, in light of the acceleration in inflation rates and reached 8.6% last June, more than four times the central target at 2 percent, according to the agency "Bloomberg".
The official trend so far is to raise interest rates by 25 basis points as a starting point for the rate hike process, and it is unclear whether doubling this number will receive sufficient support from ECB officials.
And Lagarde had left the door open for an even greater increase in interest rates In a speech she gave on June 28, she said: "Clearly there are circumstances in which gradation would not be appropriate.. If, for example, we see higher inflation that threatens to stabilize inflation expectations, or signs of a permanent loss of economic potential that limits the availability of resources, we will need to move faster.".
The European Central is facing great pressure to curb inflation, which was exacerbated by the rise in food and energy prices in the wake of the Russian-Ukrainian crisis.
Many analysts consider that the European Central Bank has failed to keep pace with the tightening of monetary policy in the world, especially in United State It was a major reason for the depreciation of the exchange rate euro Which reached the stage of parity with the US dollar in the past days for the first time in 20 years, before regaining some of its losses.
After inflation rates rose in the United States to a new peak last June, the highest in more than 4 decades, expectations increased for the US Federal Reserve to raise interest rates by 75 points later this month, continuing a series of raising interest rates and withdrawing liquidity from the markets with the aim of controlling prices.
A majority of economists in a Bloomberg survey expect the ECB to raise interest rates by 25 basis points on Thursday.
Matthew Ryan, Head of Market Strategy at "Iberian"to Bloomberg Agency: "We do not rule out a 50 basis point rate hike at this week’s meeting.. We have already seen most of the major central banks offer bumper rate hikes in recent weeks in an effort to control rampant price growth, and there is even talk that the US Federal Reserve may consider Increase by 1 percentage point later this month".
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and studying European Central Bank At the present time, the possibility of raising interest rates by 0.5% (or 50 basis points), which is double what was announced by the President of the Bank Christine Lagarde last month, in light of the acceleration in inflation rates and reached 8.6% last June, more than four times the central target at 2 percent, according to Bloomberg.
The official trend so far is to raise interest rates by 25 basis points as a starting point for the rate hike process, and it is unclear whether doubling this number will receive sufficient support from ECB officials.
And Lagarde had left the door open for an even greater increase in interest rates In a speech she gave on June 28, she said: “It is clear that there are circumstances in which gradation will not be appropriate… If, for example, we see higher inflation that threatens to stabilize inflation expectations, or signs of a permanent loss of economic potential that limits the availability of resources, We need to move faster.”
The European Central is facing great pressure to curb inflation, which was exacerbated by the rise in food and energy prices in the wake of the Russian-Ukrainian crisis.
Many analysts consider that the European Central Bank has failed to keep pace with the tightening of monetary policy in the world, especially in United State It was a major reason for the depreciation of the exchange rate euro Which reached the stage of parity with the US dollar in the past days for the first time in 20 years, before regaining some of its losses.
After inflation rates rose in the United States to a new peak last June, the highest in more than 4 decades, expectations increased for the US Federal Reserve to raise interest rates by 75 points later this month, continuing a series of raising interest rates and withdrawing liquidity from the markets with the aim of controlling prices.
A majority of economists in a Bloomberg survey expect the ECB to raise interest rates by 25 basis points on Thursday.
“We don’t rule out a 50 basis point rate hike at this week’s meeting,” Matthew Ryan, head of market strategy at Ebery, told Bloomberg. “We have already seen most of the major central banks offer ample rate hikes in recent weeks in an effort to control on rampant price growth, and there is even talk that the Fed may consider a one-percentage point increase later this month.”