The European Central Bank said its estimates indicated the need to keep interest rates unchanged at -0.5 percent until more data is released this month to achieve the greatest possible flexibility in monetary policy management.
And European Central, in a statement, decided to stop “net asset purchases under the Asset Purchase Program (APP) from July 1, 2022, which means its direction to increase interest rates.”
The statement quoted European Central Bank President Christine Lagarde as saying: “High inflation is a major concern for all of us. The Board of Governors will ensure that inflation returns to our target of 2 percent over the medium term.”
In May last year, the inflation rate rose significantly to 8.1 percent, mainly due to rising energy and food prices, due to the impact of the Russian-Ukrainian war.
According to the statement, “Inflation is expected to remain undesirably high for some time to come. However, the adjustment in energy prices and the easing of supply disruptions are expected to reduce inflation.”
The European Central Bank expects inflation to reach 6.8 percent in 2022 before falling to 3.5 percent in 2023 and 2.1 percent in 2024. 2.1 percent in 2024.
Source: El Iktisad
