ECB rules out 50 basis point rate hikes despite inflation
The debate in the ECB's Governing Council is focused on moving to monetary restriction after leaving interest rates at 2.5% at the last monetary summit.
The European Central Bank (ECB) is set to continue its monetary policy tightening, but at a gradual pace. Despite rising inflation due to the conflict in Iran and the closure of the Strait of Hormuz, ECB members believe they can proceed with caution, without resorting to more drastic measures such as 50-basis-point interest rate hikes.
The ECB's Governing Council is discussing whether to continue adjusting monetary policy, but no one thinks it's necessary to raise interest rates by 50 basis points at this time. Christine Lagarde, ECB President, has noted that inflation expectations remain anchored, and the shock has been less severe than expected, except in the energy sector.
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.
