The Monumental Mistake Of Raising Rates In September
6 Articles
6 Articles
The European Central Bank is preparing to raise interest rates at its crucial meeting on September 10th. Risks posed by the war in the Middle East and inflation remaining at 2.9% in the Eurozone have ignited a new wave of tightening within the bank, "as a precautionary and insurance measure."
The next meeting of the Governing Council of the ECB in September casts its shadows ahead. An increase in interest rates is considered likely.
In September, the European Central Bank and the US Federal Reserve System are scheduled to hold monetary policy meetings. However, it seems that each of them will go in a different direction, predicts Václav Franče, an economic analyst at the financial house Uniqa. He recalled that the ECB took a break from tightening monetary policy during the summer...
As eyes in the US and Europe turn to the September interest rate decisions, a stern warning has been issued to central banks. Daniel Lacalle, a global economics professor, argues that the rise in inflation is largely due to the shock in energy prices, not to excessive demand or a credit boom, and that another interest rate hike would increase pressure on households and businesses instead of solving the price problem.
The ECB's next interest rate decision will be taken at its meeting on September 10. Analysts said that the bank, which raised interest rates for the first time in almost three years in June and decided to pause at its July meeting, this time...
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