The European Central Bank has kept key interest rates unchanged despite record rises in inflation.
While the bank says that higher inflation will fade throughout the year, many economists are wondering whether consumer prices will remain high for much longer.
The latest decision comes as market participants have started pricing in the chances of two rate hikes by the ECB this year.The central bank's benchmark refinancing rate remains at 0%, the rate on its marginal lending facility sits at 0.25% and the rate on its deposit facility was kept at -0.5%. The lack of action comes at a time of increased pressure on the ECB. The 19-member region has seen inflation creep up month after month, with the most recent reading hitting a record 5.1% in January.
While the bank says that higher inflation will fade throughout the year, many economists are wondering whether consumer prices will remain high for much longer. A more prolonged period of higher inflation could put the ongoing economic recovery at risk.is set to explain the bank's latest monetary policy decision at 1.30 p.m. U.K. time.
The latest decision comes as market participants have started pricing in two rate hikes for the ECB this year. However, the central bank has tried to play down that possibility.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Sweden to lift pandemic restrictions next weekSweden will lift pandemic restrictions next week despite record levels of infections as it banks on booster shots and high rates of past COVID-19 infections to keep hospitalisation rates manageable.
Les mer »
EUR/USD Forex Signal: Cautiously Optimistic Ahead of ECBThe EUR/USD pair continued its bullish trend as investors waited for the upcoming interest rate decision by the European Central Bank (ECB).
Les mer »
Covid-19’s Economic Fallout Batters Latin AmericaThe region is bracing this year for rampant inflation, low growth and high interest rates that spell hardship for tens of millions of people in poverty as businesses struggle to survive.
Les mer »
Wells Fargo’s new North Texas commercial banking head talks tech, interest rates and moreTodd Burns has been in Dallas-Fort Worth for 50 years and in the banking industry for nearly 30 years. But he wasn’t born here. “I have to admit I was born...
Les mer »
Bank of England makes consecutive interest rate hikes for first time since 2004The Bank of England on Thursday announced its second consecutive interest-rate increase, the first time it's done back-to-back hikes since 2004.
Les mer »
Breaking: Bank of England hikes interest rates by 25bps to 0.50%, GBP spikesThe Bank of England announced its monetary policy decision on Thursday and raised the benchmark interest rate by 25bps to 0.50%. The Monetary Policy C
Les mer »