The era of negative interest rates in the eurozone officially ended this Thursday. For the first time in 11 years, the ECB raised interest rates and did so with greater intensity than previously indicated, also leaving the door open for further rate hikes at the next meetings (the next one will be in September). What impacts will this tightening of monetary policy have on households and companies? And will it really help reduce inflation?
On the other hand, as Christine Lagarde herself acknowledged, this faster rise in interest rates -by 50 basis points, not just 25- was a bargaining chip to be able to say that the ECB decided -unanimously- to create a “new instrument”. to curb negative speculation on the interest on the debt of countries such as Italy (and, by extension, Portugal and Spain). Will this new instrument be able to avoid a new debt crisis?
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Source: Observadora
