Still long way to go until inflation is squeezed out of economy
The post Still long way to go until inflation is squeezed out of economy appeared on BitcoinEthereumNews.com. European Central Bank (ECB) President Christine Lagarde said over the weekend that interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis. Key quotes There is still a long way to go until inflation is squeezed out of the economy. It will not be an entirely smooth ride. We still need to have our foot on the brake for a while, even if we are not pressing down as hard as before. Interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis. Market reaction At the time of writing, EUR/USD is trading 0.11% higher on the day at 1.1407. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used…
The post Still long way to go until inflation is squeezed out of economy appeared on BitcoinEthereumNews.com.
European Central Bank (ECB) President Christine Lagarde said over the weekend that interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis. Key quotes There is still a long way to go until inflation is squeezed out of the economy. It will not be an entirely smooth ride. We still need to have our foot on the brake for a while, even if we are not pressing down as hard as before. Interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis. Market reaction At the time of writing, EUR/USD is trading 0.11% higher on the day at 1.1407. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used…
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