Latest News

ECB should raise rates at steady pace, chief economist says

0

ECB should raise rates at steady pace, chief economist says By Reuters

Breaking News

‘;

Economy 12 minutes ago (Aug 29, 2022 14:47)

2/2
© Reuters. FILE PHOTO: The European Central Bank (ECB) logo in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski
2/2

FRANKFURT (Reuters) -The European Central Bank should raise interest rates at a “steady pace” until the end of its hiking cycle, partly to maintain room to correct the policy path if circumstances change, ECB chief economist Philip Lane said on Monday.

The ECB raised rates by 50 basis points to zero in July.

While a similar move was expected in September until very recently, a host of policymakers have made the case for a larger hike due to the worsening inflation outlook.

“A steady pace – that is neither too slow nor too fast – in closing the gap to the terminal rate is important for several reasons,” Lane said, without expressing a preference for the Sept. 8 policy decision.

“The appropriate size of the individual increments will be larger the wider the gap to the terminal rate and the more skewed the risks to the inflation target,” he told a conference in Barcelona.

While the “terminal” rate is an open question, policymakers have said the ECB should get to the neutral rate, which neither stimulates nor cools the economy, somewhere around the turn of the year. This rate is estimated at around 1.5% to 2%, suggesting a hike at every remaining policy meeting this year.

“While upside risks to inflation are currently more intense than downside risks, if the incoming data … call for a downward shift in the terminal rate, this would be easier to handle under a step-by-step approach,” Lane said.

“A multi-step adjustment path towards the terminal rate also makes it easier to undertake mid-course corrections if circumstances change.”

Lane also noted that even if current inflation is high, indicators of longer term expectations remain close to the ECB’s 2% target as economic players appear to understand that temporary factors behind the surge will fade and the ECB will do its job.

ECB should raise rates at steady pace, chief economist says

Russian rouble firms towards 60 vs dollar, stocks upBy Reuters – Aug 29, 2022

MOSCOW (Reuters) -The rouble firmed towards 60 against the dollar on Monday, supported by the last month-end tax payments that boost demand for the Russian currency, while stocks…

Russia says economy to contract by less than 3% in 2022By Reuters – Aug 29, 2022

(Reuters) – Russia’s economy will contract by less than 3% this year, First Deputy Prime Minister Andrei Belousov said on Monday, as a strong jobs market helps cushion the economy…

Russia’s inflation will be 12-13% in 2022, Kremlin aide saysBy Reuters – Aug 29, 2022

(Reuters) – Russia’s First Deputy Prime Minister Andrei Belousov said inflation will come in at 12-13% in 2022, below earlier expectations, as the economy looks set to defy the…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Russian rouble firms towards 60 vs dollar, stocks up

Previous article

Maersk agrees to sell stake in Russian port operator

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News