The ECB, ready to take its rates into restrictive territory
When the European Central Bank (ECB) raises interest rates, investors immediately turn the page on that meeting and start speculating about future moves.
The European Central Bank (BCE) is expected to raise interest rates further, with markets betting on three more hikes. BCE President Christine Lagarde left the door open to continued monetary policy tightening, but warned that once interest rates enter "restrictive territory" above 2.5%, it will become more complex to raise them further.
The BCE considers this necessary to combat inflation, which could become entrenched like in 2022 if not addressed. The economy has so far resisted the two initial rate hikes, but further increases could have a cooling effect on economic activity.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
