Like the US Fed, the European Central Bank (ECB) will raise interest rates by a quarter of a percentage point. This means that the ECB is slowing down compared to a month earlier, when the rate increase was still half a percentage point.
It was questionable beforehand how far the ECB would follow its US counterpart. According to BNR internal economist Han de Jong, there were “hawks and pigeons inside the central bank”. ‘On the one hand there are the ‘hawks’ who want to fight inflation vigorously and raise interest rates by half a percentage point. And on the other hand, the “pigeons”, he told BNR earlier. “The pigeons will argue that an interest rate hike has a lagged effect and that it’s time to take it easy.”
The US Federal Reserve also raised interest rates yesterday, bringing the total interest rate in the US to between 5 and 5.25 percent. According to De Jong, there is a good chance that this will also be the latest interest rate hike for the time being.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
