The ECB has now increased borrowing costs by a combined four percentage points in a year, its fastest pace on record, but a peak is now clearly in sight
The European Central Bank raised borrowing costs to their highest level in 22 years on Thursday and left the door open to more hikes, extending its fight against high inflation even as the euro zone economy flags.
“Future decisions will ensure that the key ECB interest rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2 per cent medium-term target and will be kept at those levels for as long as necessary,” the ECB said. But inflation in the euro zone is still unacceptably high for the ECB at 6.1 per cent and underlying price growth, which typically excludes food and energy, is only starting to slow.
Economists polled by Reuters before Thursday’s decision expected another 25-basis-point deposit rate hike in July, as flagged by a host of policy-makers.
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.
Turkey's gold-selling spree: central bank sells another 63 tonnes of gold in May
Read more »
Imagining an A.I.-led central bankBenjamin Tal, deputy chief economist at CIBC Capital Markets, tells BNN Bloomberg that an A.I-led, data dependent and emotionless Bank of Canada would have stayed on pause with interest rates at its last meeting, recognizing that inflation and other factors are lagging economic indicators. He discusses the risks of overshooting on monetary policy but says it’s difficult for human leaders of central banks to ignore rising inflation and cut rates amidst rising prices.
Read more »
Gold prices under pressure against the euro as ECB raises interest rates by 25 basis points(Kitco News) - The gold market is struggling against the euro after the European Central Bank raised interest rates and warns investors that inflation pressures remain too high for too long.
Read more »
Bank of Thailand launches retail CBDC pilot projectThe Bank of Thailand has announced the launch of its retail central bank digital currency pilot project in conjunction with three regional banks.
Read more »
FIFA makes European TV deal for Women’s World Cup, ends standoff with broadcastersThe deal struck collectively with the European Broadcasting Union ended nine months of jibes aimed by FIFA president Gianni Infantino at free-to-air networks in England, France, Germany, Italy and Spain
Read more »
Google should break up digital ad business over competition concerns, European regulators sayEuropean Union regulators hit Google with fresh antitrust charges Wednesday, saying the only way to satisfy competition concerns about its lucrative digital ad business is by selling off parts of the tech giant's main moneymaker.
Read more »