Christine Lagarde

ECB ‘could hike rates or pause at next meeting’

The European Central Bank (ECB) could hike interest rates again or pause at its next meeting and any decision will depend on the latest data, president Christine Lagarde has said.

The central bank for the 20 countries that use the euro lifted borrowing costs for the ninth consecutive time on July 28 as it fights stubbornly high inflation.

Profits feeding inflation

Across the developed world, we are hearing the argument that high costs are "profit inflation," meaning that rising prices stem mainly from rising profit margins. This is confirmed by reputable economists at multinational banks like UBS and others, by the chief economist of the European Central Bank, Philip Lane, and by its president, Christine Lagarde.

Greedflation not a passing storm

Inflation is, of course, not only a Greek problem or just an imported problem. It's also not like a storm that can't be dealt with and you just wait for it to pass. Nor, again, is it a neutral phenomenon: It redistributes wealth. As long as consumption holds up, producers and retailers raise prices and profits. Are we experiencing greedflation?

No pause in sight as ECB eyes next rate hike

The European Central Bank will almost certainly deliver another interest rate hike tomorrow, pressing ahead with its fight against inflation even as the eurozone slides into a recession.

Analysts predict that ECB policymakers will copy May's move and again raise borrowing costs by 25 basis points, taking the closely watched deposit rate to 3.5 percent.

Lagarde: Inflation in the Eurozone remains High, another Interest Rate Hike is Imminent

"Core inflation in the Eurozone will remain high for the foreseeable future, so a European Central Bank (ECB) interest rate hike of up to 50 basis points later this month looks increasingly certain", ECB President Christine Lagarde told the Spanish media group Vocento.

The European Central Bank Predicts "Very Strong" Wage Growth over the Next Few Quarters

Wage growth in the Eurozone is expected to be "very strong" over the next few quarters, but real wages are still likely to decline given the sharp rise in inflation, according to an article in the European Central Bank's economic bulletin released on Monday. Reuters.

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