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

0 8

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

knife

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.

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

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 51,643.84
ethereum
Ethereum (ETH) $ 2,992.06
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 382.14
solana
Solana (SOL) $ 104.48
xrp
XRP (XRP) $ 0.546154
staked-ether
Lido Staked Ether (STETH) $ 2,990.74
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.597171
avalanche-2
Avalanche (AVAX) $ 36.75
dogecoin
Dogecoin (DOGE) $ 0.086103
tron
TRON (TRX) $ 0.137613
chainlink
Chainlink (LINK) $ 18.52
polkadot
Polkadot (DOT) $ 7.86
matic-network
Polygon (MATIC) $ 0.996968
uniswap
Uniswap (UNI) $ 11.19
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,609.83
the-open-network
Toncoin (TON) $ 2.12
internet-computer
Internet Computer (ICP) $ 12.60
shiba-inu
Shiba Inu (SHIB) $ 0.00001
bitcoin-cash
Bitcoin Cash (BCH) $ 267.72
litecoin
Litecoin (LTC) $ 70.52
dai
Dai (DAI) $ 0.999179
immutable-x
Immutable (IMX) $ 3.09
filecoin
Filecoin (FIL) $ 7.91
cosmos
Cosmos Hub (ATOM) $ 10.40
near
NEAR Protocol (NEAR) $ 3.86
leo-token
LEO Token (LEO) $ 4.21
kaspa
Kaspa (KAS) $ 0.16997
blockstack
Stacks (STX) $ 2.59
ethereum-classic
Ethereum Classic (ETC) $ 26.16
hedera-hashgraph
Hedera (HBAR) $ 0.110065
bittensor
Bittensor (TAO) $ 573.51
optimism
Optimism (OP) $ 3.68
aptos
Aptos (APT) $ 9.44
stellar
Stellar (XLM) $ 0.116677
first-digital-usd
First Digital USD (FDUSD) $ 1.00
vechain
VeChain (VET) $ 0.044678
okb
OKB (OKB) $ 51.41
injective-protocol
Injective (INJ) $ 34.62
lido-dao
Lido DAO (LDO) $ 3.30
celestia
Celestia (TIA) $ 16.96
render-token
Render (RNDR) $ 7.25
the-graph
The Graph (GRT) $ 0.269829
mantle
Mantle (MNT) $ 0.780672
crypto-com-chain
Cronos (CRO) $ 0.094486
arbitrum
Arbitrum (ARB) $ 1.85
monero
Monero (XMR) $ 126.53
sei-network
Sei (SEI) $ 0.85664
sui
Sui (SUI) $ 1.65
maker
Maker (MKR) $ 2,037.00
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,289.99
beam-2
Beam (BEAM) $ 0.032994
thorchain
THORChain (RUNE) $ 5.44
algorand
Algorand (ALGO) $ 0.195628
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,053.31
elrond-erd-2
MultiversX (EGLD) $ 58.31
quant-network
Quant (QNT) $ 104.21
dydx-chain
dYdX (DYDX) $ 3.53
flow
Flow (FLOW) $ 1.01
bitcoin-sv
Bitcoin SV (BSV) $ 75.72
aave
Aave (AAVE) $ 100.06
bitget-token
Bitget Token (BGB) $ 1.00
flare-networks
Flare (FLR) $ 0.040383
starknet
Starknet (STRK) $ 1.91
mina-protocol
Mina Protocol (MINA) $ 1.31
ordinals
ORDI (ORDI) $ 64.17
theta-token
Theta Network (THETA) $ 1.32
havven
Synthetix Network (SNX) $ 4.01
helium
Helium (HNT) $ 8.90
true-usd
TrueUSD (TUSD) $ 0.973988
tokenize-xchange
Tokenize Xchange (TKX) $ 15.57
fantom
Fantom (FTM) $ 0.419629
the-sandbox
The Sandbox (SAND) $ 0.52238
blur
Blur (BLUR) $ 0.789041
chiliz
Chiliz (CHZ) $ 0.126411
fetch-ai
Fetch.ai (FET) $ 1.07
axie-infinity
Axie Infinity (AXS) $ 8.08
worldcoin-wld
Worldcoin (WLD) $ 8.13
dydx
dYdX (ETHDYDX) $ 3.54
bittorrent
BitTorrent (BTT) $ 0.000001
apecoin
ApeCoin (APE) $ 1.76
gala
GALA (GALA) $ 0.029861
tezos
Tezos (XTZ) $ 1.12
whitebit
WhiteBIT Coin (WBT) $ 7.05
kucoin-shares
KuCoin (KCS) $ 10.46
sats-ordinals
SATS (Ordinals) (SATS) $ 0.00000047992859
osmosis
Osmosis (OSMO) $ 1.58
cheelee
Cheelee (CHEEL) $ 18.64
woo-network
WOO (WOO) $ 0.53347
dymension
Dymension (DYM) $ 6.35
conflux-token
Conflux (CFX) $ 0.246489
decentraland
Decentraland (MANA) $ 0.501305
singularitynet
SingularityNET (AGIX) $ 0.733705
akash-network
Akash Network (AKT) $ 4.02
eos
EOS (EOS) $ 0.800218
arweave
Arweave (AR) $ 13.89
frax-ether
Frax Ether (FRXETH) $ 2,982.90
astar
Astar (ASTR) $ 0.161824
ronin
Ronin (RON) $ 3.01