In a statement announcing interest rate hikes by 75 basis points, the European Central Bank (ECB) warned this Thursday (8th) that further increases should be carried out in the next meetings to try to control the escalation of inflation in the euro zone. .
According to the note, the ECB considers that inflation “is very high” and should remain above the 2% target for some time.
Therefore, monetary tightening will seek to contain demand and avoid de-anchoring inflation expectations.
“Rising energy and food prices, demand pressures in some sectors due to the reopening of the economy and supply bottlenecks are still driving up inflation,” the text highlights.
Also according to the ECB, the interest rate hike now aims to anticipate the transition from a highly accommodative monetary policy to settings that reduce inflation.
“As the current drivers of inflation disappear over time and the normalization of monetary policy hits the economy and pricing, inflation will fall,” he says.
Source: CNN Brasil
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