Last month’s meeting of European Central Bank (ECB) officials showed growing concern that high inflation was taking root, and the risk was great enough to justify a higher-than-signaled rate hike, the minutes showed. of the July 21 meeting.
The ECB raised interest rates by 0.50 percentage point last month to zero on rising inflation fears, surprising investors with an unexpectedly high dose of tightening after indicating a minor adjustment of 0.25 point.
“It was considered that inflationary pressures have intensified”, showed the minutes this Thursday (25).
“The continued anchoring of inflation expectations depended on the Governing Council acting decisively on the worsening inflation outlook.”
The ECB is expected to raise borrowing costs by another 0.50 point next month, even with the growing risk of a recession, as inflation is approaching double-digit territory and the looming gas shortage could push up prices further. prices.
This content was originally published in ECB Minutes shows growing concerns about escalating inflation on the CNN Brasil website.
Source: CNN Brasil