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ECB keeps intrigue on monetary policy


Eylül, 06 2023
watermark Economic news

Members of the European Central Bank have warned investors expecting that the bank will not raise the interest rate next week that the decision remains open, and a rate hike is still one of the possible options. 


This happened against the background of a deterioration in economic activity in countries using the euro and a decrease in inflation. Earlier, it was assumed that the ECB would complete a series of 9 consecutive rate hikes on September 14.


The heads of the central banks of the Netherlands, France, Germany and Slovakia expressed different points of view on this issue. The head of the Central Bank of France noted that the interest rate is approaching its peak, and it may be necessary to consider the option of reducing it.


The head of the Central Bank of Slovakia believes that another rate hike is still necessary to curb inflation, and suggested raising the rate next week, after which to take a breather.


The head of the Dutch Central Bank said that investors may be underestimating the chances of a rate hike next Thursday. 


These statements indicate uncertainty about the future of interest rates in the eurozone and that the ECB's decision is still being discussed and will depend on economic conditions.



    






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