ECB preparing to complete raising interest rates
2023.01.10 13:57
ECB preparing to complete raising interest rates
By Tiffany Smith
Budrigannews.com – Mario Centeno, a member of the governing council of the European Central Bank, stated on Tuesday that the current process of raising interest rates is coming to an end.
In response to Portuguese lawmakers at a committee hearing in Lisbon, the central banker said that even though inflation may encounter some resistance in January and February, it will resume falling in March.
He stated, “I believe that is true”: “We are approaching the end of the current process of interest rate hikes.”
“Wage updates in Europe could make it difficult for prices to continue to fall” in the next two months, according to Centeno, “but after that, inflation will fall again from March onwards.”
Eurostat data from Friday showed that annual inflation in the euro area slowed to 9.2% in December from 10.1% in November.
Inflation would slowly fall, according to the ECB’s forecast, but it would only get close to its goal of 2% in three years.
On December 15, the ECB moderated its policy-tightening push by increasing the rate it pays on bank deposits by 50 basis points, from 75 bps to 2%.
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