SEPOY.net
No Result
View All Result
Saturday, June 14, 2025
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
No Result
View All Result
SEPOY.NET
No Result
View All Result
Home News

ECB raises interest rates: monetary policy in thick fog

Nicholas by Nicholas
October 27, 2022
in News
0

DMonetary policy is not only in a difficult phase in the euro zone. Inflation is proving to be more persistent than desired; at the same time, prospects for economic growth deteriorate significantly. The scenery is increasingly reminiscent of the situation around half a century ago, when a steep rise in oil prices after the Yom Kippur War favored a period of significantly higher inflation rates.

As was the case then, there are increasing numbers of governments who expect monetary policy to be geared more closely to slowing economic growth. These demands stand in striking contrast to the concern many people feel about high inflation. They also contradict the experience of the oil crisis. Monetary policy should ignore government demands and focus on their fight against inflation.

Monetary policy difficult years ago

The Central Bank Council of the European Central Bank has therefore done well to raise the key interest rates significantly again, to hold out the prospect of further key interest rate increases and to initiate a slow reduction in the ECB’s much too large balance sheet total. However, the Central Bank Council must also find the strength to stay on the path it has taken in the future. In view of an inflation rate of 10 percent, a key interest rate of 2 percent can by no means be regarded as an expression of an excessively tight monetary policy. And since monetary policy does not take effect immediately, but only with some delay, the inflation rate will remain very high for the time being.

The longer-term prospects remain hidden behind dense clouds of fog due to the great economic and political uncertainty. It is possible that higher key interest rates, a weaker economy, falling energy prices and easing in world trade will lead to noticeably lower inflation rates in the coming year. On the other hand, in a thought-provoking article in Foreign Affairs, economist Ken Rogoff has proclaimed a new era of inflation. Monetary policy faces difficult years.

  • Christian Siedenbiedel

  • Published/Updated:



  • Recommendations:

    2

  • READ ALSO

    Live blog for the Merz government: Spahn to mask report: “I have nothing to hide”

    Israel reports again by Iran

  • Published/Updated:

  • Christian Siedenbiedel

  • Published/Updated:

  • ,



    Recommendations:

    33

  • Daniel Schleidt

  • Published/Updated:

  • ,



    Recommendations:

    6

  • Christian Siedenbiedel

  • Published/Updated:

  • ,



    Recommendations:

    85

Source

Tags: ECBmonetary policypolicy raterate hike

Related Posts

Live blog for the Merz government: Spahn to mask report: “I have nothing to hide”
News

Live blog for the Merz government: Spahn to mask report: “I have nothing to hide”

June 14, 2025
Israel reports again by Iran
News

Israel reports again by Iran

June 13, 2025
After attack on Iran: Merz confirms Israel's right to defense
News

After attack on Iran: Merz confirms Israel's right to defense

June 13, 2025
News

Best 10 Online Slots Casinos to Play for Real Money Slots %year%

June 13, 2025
Liveblog USA under Trump: Judge forbids Trump Reform of the US electoral system
News

Liveblog USA under Trump: Judge forbids Trump Reform of the US electoral system

June 13, 2025
News

How People Use the Internet to Sexually Exploit Children and Teens

June 13, 2025
Next Post

Aviva exec to lead Insurance Institute’s board

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About

Sepoy.net is a perfect place for people who want daily updates on news related to business, technology, entertainment, health, cryptocurrency etc.

Contact: hello@sepoy.net

Major Categories

News

Business

Tech

Economy

 

Recent Posts

  • $5 Put Gambling enterprises NZ Totally Iron Man 3 Rtp real money free Revolves For five dollar
  • Der beste Online Spielbank Bonus exklusive Einzahlung 2025
  • Old Egypt Harbors Gamble casino Tomb Raider Rtp Egyptian-Themed Ports free of charge

Pages

  • About Us
  • Contact Us
  • Disclaimer
  • DMCA
  • Home
  • Privacy Policy

© 2023 Sepoy.net

No Result
View All Result
  • Home
  • Business
  • News
  • Health
  • Tech
  • Science
  • Lifestyle
  • Travel

© 2023 Sepoy.net