ECB, board member Panetta brakes: “Inflation below 3% by the end of the year”
Continue the “hard” line of European Central Bank: the Council “will continue to raise interest rates significantly at a constant pace and to keep them at sufficiently restrictive levels” to bring inflation back to 2%. The economic bulletin of the central bank, after the 50 basis point increase in rates on 2 February, “expects further increases” and “he means raise interest rates another 50 basis points at the next meeting of monetary policy, in March, to then evaluate the subsequent evolution”.
“Keeping interest rates at restrictive levels by curbing demand will decrease inflation over time and will also put the hedge against the risk of a lasting upward shift in inflation expectations. In any case, also in the future the decisions of the Governing Council on key rates will be data-dependent and will reflect an approach according to which these decisions are defined on a case-by-case basis at each meeting.
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