Europeans to See More Interest Rate Hikes, Central Bank Governors Indicate

0 7

Europeans to See More Interest Rate Hikes, Central Bank Governors Indicate

knife

Further rate hikes are warranted by persisting inflation in the eurozone, according to members of its monetary authority’s decision-making body. Two central bank governors, with different opinions about how aggressive the European Central Bank should be, nevertheless agree that more increases of key interest rates are yet to come.

ECB Has Some Hikes Left to Make, Bank of France Chief Admits

Although the European Central Bank (ECB) has done most of the work in terms of interest rate hikes, it still has a “little way to go,” Banque de France Governor Francois Villeroy de Galhau said on Wednesday, quoted by Reuters. It’s not the first time Villeroy has prepared the public for what’s to come.

After the fastest ever rate raising during the past year, the ECB is now considering whether to slow down the increases. The next decision is expected in early May, when policymakers will determine how much higher than 3% the deposit rate needs to be to bring inflation down to the 2% target.

“We may possibly still have a little way to go on rate hikes at our next meetings, though I think it’s premature to decide now what we will do in May,” Villeroy said in a speech in Washington. He made a similar statement in an interview at the end of March.

The head of the French central bank, who is a member of ECB’s Governing Council, believes most of the rate hiking has been done already and argues that the biggest impact will come from previous rate increases. The tightening can stop once inflation starts turning around, he insisted, elaborating:

A turnaround in the trajectory of underlying inflation – be it actual or expected with sufficient certainty – should be a trigger for stabilizing our rates.

Inflation Outlook Warrants 50 Bps Increase, Austria’s Hawkish Central Bank Governor Says

Since July, 2022, the ECB has raised interest rates by 350 basis points (bps) including three back-to-back 50 bps increases, but it has not provided any clear indication yet about the potential outcome of its upcoming meeting on May 4, Reuters noted in a separate report.

Oesterreichische Nationalbank Governor Robert Holzmann, who also sits on the ECB’s 26-member Governing Council, told the German press that the eurozone’s monetary authority needs to keep raising interest rates. In an interview with the Boersen Zeitung newspaper, he insisted:

The persistence of inflation currently argues for another 50 basis points.

“There is a great deal of common understanding in the ECB Governing Council that we have not yet reached the end,” Holzmann revealed. “We must continue to act decisively and continue to raise key interest rates noticeably even beyond May,” added Austria’s chief banker who is considered a hawk among the Council’s members.

Expectations for further rate increases were recently highlighted by two other members of the Council — the Governor of the Croatian National Bank, Boris Vujčić, and his colleague at the helm of Bank of Slovenia, Boštjan Vasle. Core inflation is clearly on an upward trend, Vasle was quoted as saying while Vujčić acknowledged that more hikes may follow.

By how much do you expect the ECB to raise interest rates in May? Share your forecasts in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 50,956.65
ethereum
Ethereum (ETH) $ 3,043.18
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 385.47
solana
Solana (SOL) $ 101.62
staked-ether
Lido Staked Ether (STETH) $ 3,040.24
xrp
XRP (XRP) $ 0.533134
usd-coin
USDC (USDC) $ 0.999126
cardano
Cardano (ADA) $ 0.574983
avalanche-2
Avalanche (AVAX) $ 36.43
tron
TRON (TRX) $ 0.137491
dogecoin
Dogecoin (DOGE) $ 0.084334
chainlink
Chainlink (LINK) $ 18.20
polkadot
Polkadot (DOT) $ 7.63
matic-network
Polygon (MATIC) $ 0.976586
uniswap
Uniswap (UNI) $ 10.62
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 50,983.66
the-open-network
Toncoin (TON) $ 2.11
shiba-inu
Shiba Inu (SHIB) $ 0.000009
internet-computer
Internet Computer (ICP) $ 12.15
bitcoin-cash
Bitcoin Cash (BCH) $ 263.07
litecoin
Litecoin (LTC) $ 69.24
dai
Dai (DAI) $ 0.999672
immutable-x
Immutable (IMX) $ 3.18
filecoin
Filecoin (FIL) $ 7.83
cosmos
Cosmos Hub (ATOM) $ 10.33
near
NEAR Protocol (NEAR) $ 3.74
leo-token
LEO Token (LEO) $ 4.18
ethereum-classic
Ethereum Classic (ETC) $ 26.78
kaspa
Kaspa (KAS) $ 0.161866
bittensor
Bittensor (TAO) $ 579.23
optimism
Optimism (OP) $ 3.69
blockstack
Stacks (STX) $ 2.44
hedera-hashgraph
Hedera (HBAR) $ 0.103812
aptos
Aptos (APT) $ 9.38
vechain
VeChain (VET) $ 0.046575
first-digital-usd
First Digital USD (FDUSD) $ 0.998159
stellar
Stellar (XLM) $ 0.114289
injective-protocol
Injective (INJ) $ 35.06
okb
OKB (OKB) $ 49.86
lido-dao
Lido DAO (LDO) $ 3.35
mantle
Mantle (MNT) $ 0.891358
celestia
Celestia (TIA) $ 16.25
render-token
Render (RNDR) $ 7.15
the-graph
The Graph (GRT) $ 0.286812
crypto-com-chain
Cronos (CRO) $ 0.092576
monero
Monero (XMR) $ 128.11
arbitrum
Arbitrum (ARB) $ 1.82
sei-network
Sei (SEI) $ 0.792414
maker
Maker (MKR) $ 2,046.41
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,344.99
sui
Sui (SUI) $ 1.58
beam-2
Beam (BEAM) $ 0.031933
thorchain
THORChain (RUNE) $ 5.36
algorand
Algorand (ALGO) $ 0.197861
flare-networks
Flare (FLR) $ 0.045793
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,082.21
elrond-erd-2
MultiversX (EGLD) $ 57.19
quant-network
Quant (QNT) $ 103.91
flow
Flow (FLOW) $ 0.998304
aave
Aave (AAVE) $ 98.73
bitcoin-sv
Bitcoin SV (BSV) $ 73.67
dydx-chain
dYdX (DYDX) $ 3.35
theta-token
Theta Network (THETA) $ 1.38
bitget-token
Bitget Token (BGB) $ 0.980808
starknet
Starknet (STRK) $ 1.88
mina-protocol
Mina Protocol (MINA) $ 1.25
ordinals
ORDI (ORDI) $ 62.91
havven
Synthetix Network (SNX) $ 3.95
true-usd
TrueUSD (TUSD) $ 0.973763
tokenize-xchange
Tokenize Xchange (TKX) $ 15.50
worldcoin-wld
Worldcoin (WLD) $ 8.87
helium
Helium (HNT) $ 8.29
the-sandbox
The Sandbox (SAND) $ 0.519536
fantom
Fantom (FTM) $ 0.412072
chiliz
Chiliz (CHZ) $ 0.130051
apecoin
ApeCoin (APE) $ 1.91
axie-infinity
Axie Infinity (AXS) $ 8.21
gala
GALA (GALA) $ 0.032683
fetch-ai
Fetch.ai (FET) $ 1.06
blur
Blur (BLUR) $ 0.725955
whitebit
WhiteBIT Coin (WBT) $ 7.11
kucoin-shares
KuCoin (KCS) $ 10.60
bittorrent
BitTorrent (BTT) $ 0.000001
dydx
dYdX (ETHDYDX) $ 3.34
cheelee
Cheelee (CHEEL) $ 18.53
arweave
Arweave (AR) $ 15.12
osmosis
Osmosis (OSMO) $ 1.56
tezos
Tezos (XTZ) $ 1.09
sats-ordinals
SATS (Ordinals) (SATS) $ 0.00000045822277
decentraland
Decentraland (MANA) $ 0.519388
frax-ether
Frax Ether (FRXETH) $ 3,054.41
singularitynet
SingularityNET (AGIX) $ 0.731538
woo-network
WOO (WOO) $ 0.500073
akash-network
Akash Network (AKT) $ 3.97
conflux-token
Conflux (CFX) $ 0.23994
dymension
Dymension (DYM) $ 6.12
ronin
Ronin (RON) $ 2.98
eos
EOS (EOS) $ 0.779556
astar
Astar (ASTR) $ 0.158653