fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Banking Central

Central Bank of Europe ready to ‘stamp out’ surging inflation in 2022

Central Bank of Europe will gradually move to combat soaring consumer prices with interest rate hikes in July and September 2022

Ritu M R by Ritu M R
June 30, 2022
in Central, The Global Economics, Top Stories
Reading Time: 2 mins read
0
Central Bank of Europe ready to ‘stamp out’ surging inflation in 2022

Central Bank of Europe ready to ‘stamp out’ surging inflation in 2022

30
SHARES
168
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

On Tuesday, the head of the Central Bank of Europe said it would gradually combat soaring consumer prices with interest rate hikes in July and September. Still, it will keep its options open to ‘stamp out’ inflation if it surges faster than projected.

Central Bank of Europe combats surging inflation

In a speech opening an ECB forum on central banking in Sintra, Portugal, the Central Bank President, Christine Lagarde, asked policymakers to target inflation that was soaring at a record 8.1% in the 19 countries using the Euro.

With new inflation numbers due on Friday, Lagarde said that the bank is using the dual approach to respond to economic uncertainty.

Russia’s war in Ukraine has led to rolling energy and food prices that are higher than those seen in the 1970s and 80s, and given its energy dependence, the euro area is facing these shocks acutely, Lagarde said.

She said that the size and complexity of these shocks also create uncertainty about how persistent this inflation is expected to be.

On Friday, the Central Bank of Europe announced that it would end asset purchases that worked to boost the economy and follow with its first interest rate hikes in 11 years at its meeting next month. If inflation keeps spiking, the Central Bank of Europe will also raise rates in September, leaving the option open for a more considerable hike than the quarter-point increase in July.

The Central Bank of Europe would avoid upsetting economic growth by acting too aggressively. In addition, it revised the forecast for growth in the coming two years, Lagarde said.

There are clear conditions in which gradualism would not be apt. Lagarde further indicated that people would see higher inflation threatening the economy or signs of a more permanent loss of economic potential. Therefore, the bank would need to withdraw accommodation more promptly to prevent a self-fulfilling spiral risk.

The other central banks worldwide, including the U.S. Federal Reserve, have moved quicker than the ECB to combat roaring inflation. But they risk spurring a recession as they make borrowing pricier. Fed Chair, Jerome Powell, acknowledged last week that recession was a certainty.

The Federal Reserve has raised rates three times this year, including an increase of three-quarters of a point that marked its most significant hike in nearly three decades. The Bank of England has raised rates five times since December last year.

On 28th June 2022, the Bank of England Governor, Andrew Bailey, and the Fed Chair, Jerome Powell, will join Lagarde for a policy panel discussion at the ECB forum.

Via: Short URL
Tags: Central Bank of EuropeeuropeinflationU.S. Federal Reserve
Ritu M R

Ritu M R

Ritu is a professional who aims at writing informative and engaging articles that appeal to the readers.

Related Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds
Funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

by Riya Thomas
March 24, 2023
China’s March Towards Automobile Dominance
Clean Energy

China’s March Towards Automobile Dominance

by The Global Economics
March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market
Real Estate

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

by Rahil Adnan
March 24, 2023
Ford’s Electric Vehicle Unit Forecasts $3 Billion Loss in 2023
Transportation

Ford’s Electric Vehicle Unit Forecasts $3 Billion Loss in 2023

by Riya Thomas
March 24, 2023
40% Rise in Puig Annual Revenues up to €3.6 billion, in 2022
Fashion

Puig Annual Revenues Skyrocket 40% up to €3.6 billion, in 2022

by Rahil Adnan
March 24, 2023
Previous
Next
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

March 24, 2023
China’s March Towards Automobile Dominance

China’s March Towards Automobile Dominance

March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

March 24, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version