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EUROPEAN ECONOMY: ECB Raises Interest Rates for first time in over a decade - Analysis
Posted By: GEO´ Newsteam - Gibraltar
GEOPoliticalMatters.com
With spiraling inflation caused by the Russia´s illegal invasion of sovereign neighbour Ukraine which in turn has clobbered the Energy sector and facing complete cessation of Russian Oil and Gas supplies the ECB (European Central Bank) has raised interest rates
There is no doubt that Bloc members and the UK (now in Brexile) are worried particularly when it goes down to basic human rights- food and heat. Annual inflation in the European Union reached almost nine percent in June leading to the announcement that the European Central Bank has raised interest rates by half a percentage point to try to rein in the elephant in the room a move being hailed as a landmark moment on the EUs journey towards lower inflation.
President of the European Central Bank, Christine Lagarde, said in a blog post on the ECB Website that "Inflation is too high. Russia’s war in Ukraine has pushed up the cost of energy and agricultural goods. Shortages of materials, equipment and workers due to the pandemic are also lifting prices. This is hurting people and businesses across the euro area, especially those on low incomes."
She went on to write that "much of this inflation is being driven by factors that central bankers cannot control. But what we can do is ensure that inflation does not become persistent. That is what could happen if price rises spread through the economy and people start to expect higher inflation in the future. Then we could see the kind of wage-price spirals that have historically led to inflation getting out of hand" Learn More /... Click Here to receive our full Analysis direct to your inbox or Smart device
About the ECB (European Central Bank)
The ECB is the central bank of the 19 European Union countries which use the euro. Our main task is to maintain price stability. We do this by making sure that inflation remains low, stable and predictable. In this way, we seek to help you plan your saving and spending. Learn More About ECB Monetary Policy /...
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