The European Central Bank (ECB) could slow down the rate of interest rate rises to 25 basis points this Thursday, given that previous increases are already being felt in the real economy.
The ECB’s monetary policy meeting takes place at a time when the situation in financial markets calmed downafter the strong turbulence felt in March, when the previous meeting was held.
But headline inflation rose one tenth in April in the euro area to 7%, while core inflation, which excludes energy and food prices, fell one tenth to 5.6%, the first decline in Several months.
This week the ECB released data showing that in the first quarter there was a braking in the granting of loans to companies and that applications for loans to companies and mortgage loans also decreased.
Banks anticipate a new steep drop In the coming months.
Inflation data released on Tuesday suggests the ECB could slow the pace of rate hikes to 25 basis points at its meeting, predicts economist Ulrike Kastens of the DWS group.
UniCredit analysts, quoted by the EFE agency, also anticipate an increase of 25 basis points, but do not rule out the possibility of a stronger increase of 50 basis points.
The “magic number” that controls central banks (and the lives of those who have credit). Does the 2% inflation target still make sense?
At its last meeting, held on March 16, the ECB decided to raise interest rates by 50 basis points.
Source: Observadora
