ECB to keep monetary policy highly expansionary if forecast inflation remains below 2% – Natixis ECB Inflation Eurozone Banks
will fall back below the ECB’s 2% target from mid-2022. This is also what the European Central Bank expects. According to analysts at Natixis, as long as inflation is not a real threat in the eurozone, the ECB will keep its monetary policy highly expansionary.“The ECB has many objectives: Help ensure public debt sustainability; Boost private and public investment, especially in the energy transition; Reduce structural unemployment.
“Inflation is forecast to be lower than 2% in 2023. But it is important to watch out for any shock that could push up inflation in 2023: Social crisis and demands leading to faster wage growth, bearing in mind that wage earners’ purchasing power has fallen in 2021; Geopolitical crisis, for example between Europe and Russia, leading to a further sharp rise in European natural gas prices; A flare-up of the health crisis, causing bottlenecks to reappear, particularly in transport.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
5 things to know about COVID-19 tests in the age of OmicronHere’s what you need to know about testing in the age of the Omicron variant—and what experts say you should do if you test positive
Read more »
USD/CHF Price Analysis: Corrective pullback remains elusive below 0.9150USD/CHF Price Analysis: Corrective pullback remains elusive below 0.9150 By anilpanchal7 USDCHF Technical Analysis SwingTrading ChartPatterns SupportResistance
Read more »
Survey: Only 24% Think Bitcoin Price Will Be Below $50K By End of 2022A new poll by PlanB shows that less than 24% of participants expect BTC to remain below $50,000 in the next 12 months.
Read more »
Who’s Afraid of Price Controls?'If policymakers reflexively presume the wisdom of conventional tools and dismiss the potential of unorthodox ones, we will all pay the price.,' warns EricLevitz
Read more »
Why Student Debt Keeps Growing—Even When Borrowers Keep PayingSome loan payment plans aren’t enough to cover interest, and a punishing tax bill can await years down the line.
Read more »
England head coach Silverwood tests positive for COVID-19England head coach Chris Silverwood has tested positive for COVID-19 while isolating in Melbourne, the country's cricket board (ECB) said on Sunday.
Read more »