‘We now have a two percent deposit rate. And if Knot really wants to actively slow down the economy, that means at least another 100 basis points more for me. Maybe 150.’
This would mean that interest rates will rise another 1.5%, as an inflation inhibitor. According to Brzeski, this could happen in the first half of 2023.
Wait and see
Knot’s claims are not isolated. ECB chief Lagarde has spoken out before, and Knot himself has often said that the previous hikes weren’t the last. The ECB clearly says it is not ready yet, but we still have no idea what the effect of interest rate hikes will be. For example on the real estate market», says Brzeski, who is actually in favor of a suitable time stamp. “Waiting to see what the effect of the policy of recent months will be is not a bad idea.”
There is a danger that the ECB will make the same mistake it has been making for ten years, says Brzeski. “Always continuing with an expansionary monetary policy without looking at the effect of the policy and without wanting to bring down inflation at all costs”.