Fun

Core Inflation on Upward Trend, Further Rate Hikes Expected, ECB Execs Say

News Feed - 2023-04-08 02:04:28

Core Inflation on Upward Trend, Further Rate Hikes Expected, ECB Execs Say


Amid underlying inflationary pressures, further interest rate increases may still be needed, members of the European Central Bank’s Governing Council have admitted. At the same time, the cycle with the highest hikes may soon be over, the officials indicated. End of Most Aggressive Rate Hikes in Sight Despite Inflation, but More to Come Before It’s Over


Two members of the Governing Council of the European Central Bank (ECB) have shared their assessments of the inflation outlook in the eurozone and expectations regarding the monetary authority’s next moves in that respect, Bloomberg reported.


The biggest part of the current cycle of interest-rate rises is over, although more may follow, according to Boris Vujčić. Speaking in his home country on Wednesday, the governor of the Croatian National Bank said that further hikes can be expected if core inflation, or long run inflation, remains above 4%.


Vujčić explained that while consumer-price gains have been easing, mainly due to base effects, underlying pressures, excluding volatile items like food and energy, remain high.


The Governing Council is the Eurosystem’s main decision-making body, which comprises the six members of ECB’s Executive Board plus the governors of the national central banks of the 20 countries that have adopted the common European currency.


During the same event in Croatia, Vujcic’s colleague at the Council, Boštjan Vasle, told participants that growth in prices of services, among other areas, is increasingly moving away from the ECB’s 2% target. He was quoted as stating: Core inflation is clearly on an upward trend.


Vasle, who is the governor of Bank of Slovenia, added that more monetary tightening is likely required, warning that earlier shocks may have not fully passed through the system yet.


Other ECB representatives have recently suggested that the end of the euro zone’s most aggressive period of rate increases is in sight. However, despite persisting concerns over the health of the banking sector, they believe that further action is necessary to bring inflation back under control.


Among them is the head of Austria’s central bank, Robert Holzmann, who said this week that another half-point step remains “on the cards.” Policymakers will announce their next decision on the rates in May. Last week, Bank of France Governor Francois Villeroy de Galhau hinted that “we may possibly still have a little way to go.”


In March, The European Central Bank raised the deposit rate from 2.5% to 3%, even against the backdrop of a deepening crisis with Switzerland’s banking giant Credit Suisse. Amid the current uncertainty, ECB executives have been less willing to predict future moves. Tags in this story Boris Vujčić, Boštjan Vasle, Central Bank, Central Banks, croatia, ECB, euro area, European Central Bank, Eurosystem, Eurozone, Governing Council, Governor, governors, Hike, hikes, inflation, Interest, interest rate, interest rates, slovenia


Do you think the ECB will continue to increase interest rates in the eurozone? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Swiss State-Owned Banking Giant Postfinance to Offer Crypto Services FINANCE | 12 hours ago Peter Schiff on the Upcoming Gold Bull Market and Wall Street: "It Will Be Spectacular, Capitulation Will Be Epic" FINANCE | 18 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, csp / Shutterstock.com Previous articleRendering Videos – a Fast, Reliable and Low Cost Service From GAIMIN Next articleSnoop Dogg Sports Blinged-Out Crypto Hardware Wallet at Wrestlemania 39 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days


Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto

News Feed

Encryption Crackdown: Private Phone Network With 60,000 Users Dismantled by Law Enforcement
Encryption Crackdown: Private Phone Network With 60,000 Users Dismantled by Law EnforcementAn international law enforcement team has brought down an encrypted phone network with 60,
BTC-e’s Alexander Vinnik Applies for Release on Bail Citing Trial Delay
BTC-e’s Alexander Vinnik Applies for Release on Bail Citing Trial Delay The alleged operator of crypto exchange BTC-e, Alexander Vinnik, has asked to be released on bail due to t
Martin Young3 hours agoIdealistic Ethereum community-built zkEVM Scroll launching in weeksScroll co-founder Ye Zhang is aiming for a community-driven decentralized immutable scaling solution for Ethereum.1061 Total views
Crypto Exchange Gemini Axes 7% of Its Staff in Second Wave of Layoffs
Crypto Exchange Gemini Axes 7% of Its Staff in Second Wave of Layoffs Gemini, the cryptocurrency exchange owned by the Winklevoss twins, is laying off more staff. According to repo
Digital Currency Exchange Kraken Acquires Crypto Staking Firm Staked
Digital Currency Exchange Kraken Acquires Crypto Staking Firm Staked The digital asset company Kraken announced it has acquired the non-custodial staking platform Staked for an und
Global Conglomerate Adds 580 $BTC Amid Unprecedented Crypto Popularity. Here’s Why BTC Bull Token Could 100x
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bybit introduces Indian digital rupee CBDC payment option
Derek Andersen5 hours agoBybit introduces Indian digital rupee CBDC payment optionThe use of the CBDC on the cryptocurrency exchange will enhance security and, it hopes, attract merchants.449 Total views15 Total sharesLi
Starknet staking will hit mainnet in Q4 — EthCC
Josh O"Sullivan11 hours agoStarknet staking will hit mainnet in Q4 — EthCCStarknet plans to introduce staking through a new protocol launching on the testnet before a mainnet release in Q4.660 Total views5 Total shares
US senators, FBI aren’t opposed to crypto privacy: Railgun contributor
Tom Mitchelhill6 hours agoUS senators, FBI aren’t opposed to crypto privacy: Railgun contributorEthereum privacy protocol Railgun contributor Alan Scott Jr. says U.S. regulators and government agencies don’t get enou
British Court Orders Binance to Identify and Freeze Hackers’ Accounts After a User Claims Funds Stolen
British Court Orders Binance to Identify and Freeze Hackers" Accounts After a User Claims Funds Stolen A U.K. judge has reportedly ordered cryptocurrency exchang
Spanish Real Estate Agency Offers an Apartment in Barcelona for Sale in Bitcoin- Taxes Must Be Paid in Fiat
Spanish Real Estate Agency Offers an Apartment in Barcelona for Sale in Bitcoin- Taxes Must Be Paid in Fiat A Spanish real estate platform has listed its first-e
Marcel Pechman5 hours agoEthereum price drops to a 7-month low as data points to more downsideETH price is at risk of trading below a key price support, and multiple data points point to a bearish outlook for the altcoin