The European Central Bank announced another big spike in interest rates as the global banking sector reels from SVB, Credit Suisse and potential bank collapses.
The central bank for the 20 countries that share the euro has been locked in a fight toECB staff now see inflation averaging 5.3% in 2023, 2.9% in 2024 and 2.1% in 2025. Inflation excluding energy and food continued to increase in February and ECB staff expect it to average 4.6% in 2023, which is higher than foreseen in the December projections.
Christine Lagarde, President of the European Central Bank , gives a press conference at ECB headquarters in Frankfurt, Germany, Thursday, Oct. 27, 2022. The central bank said its current macroeconomic projections were finalized in early March before the recent emergence of financial market tensions. As such, these tensions imply additional uncertainty around the baseline assessments of inflation and growth.
"The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability," the bank continued. "Its business-as-usual approach could be seen as vote of confidence in the European banking sector," said Danni Hewson, head of financial analysis at AJ Bell. "That said, the ECB was at pains to make clear that it was acutely aware of current tensions and indicated it was ready and able to step in if things deteriorate further."
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB Preview (European Central Bank)What to expect From ECB? Learn about European Central Bank's decisions and its impact on currencies: Advice to help you get the most profit out of monetary policy decisions.
Read more »
When is the European Central Bank (ECB) rate decision and how could it affect EUR/USD?When is the European Central Bank (ECB) rate decision and how could it affect EUR/USD? – by hareshmenghani ECB InterestRate EURUSD Majors Currencies
Read more »
European Central Bank delivers half-point hike to interest ratesThe European Central Bank on Thursday followed through on its plan to lift interest rates by 50 basis points, or half a percentage point, warning that...
Read more »
Major European bank tells Credit Suisse to seek urgent central bank liquidity backstop - sourceA major European bank has held talks with Credit Suisse, urging the lender to seek an urgent central bank liquidity backstop, according to a source with knowledge of the discussions.
Read more »
Silicon Valley Bank collapse throws up uncertainty for a European Central Bank hoping to hike ratesEuropean markets closed sharply lower Monday amid the fallout from the SVB crisis.
Read more »
European markets set to rally after Swiss central bank steps in to help Credit SuisseEuropean markets are set to rally at the open Thursday after the Swiss National Bank said it would provide additional liquidity to Credit Suisse.
Read more »