Over the weekend, European Central Bank (ECB) executive board member Frank Elderson said the central bank would raise interest rates further.
“It is important that expectations for how inflation will develop in the medium to long term are not diminished.”
“In general, individuals, companies or players in the economy must maintain confidence that we as the European Central Bank will reach our 2% inflation target.”
“Bringing inflation under control again – in my opinion this is a shared belief within the ECB Governing Council.”
“Ultimately, stable prices are much more important to Medium- and long-term growth and good prospects for the euro area are important.”
“We may need to get over the dry spell, but at least for now it looks like this dry spell and the decline in economic output will not It will be serious.”
Meanwhile, Joachim Nagel, a member of the Bundesbank’s pre-ECB Governing Council, said over the weekend, “Thursday’s move is a clear signal that if inflation If the situation remains the same, further clarification must be taken.”
Nagel said that future inflation “may be at an excessively high level of more than 6%”, possibly in December peaking at more than 10%, adding that “inflation conditions are likely to subside over the course of 2023.”
Reuters quoted five sources close to the matter as saying , “It is increasingly likely that many policymakers feel they need to bring interest rates into ‘restrictive territory’, which is the jargon for interest rate levels that would lead to a slowdown of 2 percent or more.”
“If the ECB for the first time
Prediction, due in December, is still above 2%.”
EUR/USD is testing sell orders below 1.0100, up 0.50% on the day, amid hawkish ECB expectations and his extended USD correction.
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