ECB: “GDP growth is growing and will continue in the second quarter of 2023”
The GDP of the euro area in the first quarter of the year rose by 0.1%, after stagnating at the end of 2022, and “the data that have been made available so far indicate for the second quarter of 2023 the continuation of positive, albeit moderate, growth”. This is what we read in the latest monthly bulletin of the European Central Bank. The Vice President of the European Central Bank, Luis DeGuindos, confirmed that the monetary policy of the Eurozone subtraction strict on credit and then, interest rates they will continue to grow; they will exceed 4% by the summer. The Spanish economist, interviewed by Il Sole 24ore, believes that only these conditions can keep the financial stability of Europe.
about thesize of the increasesthe vice president of the ECB clarified: “The‘normal’ increase of rates in monetary policy is a quarter of a point. THE hikes of 50 and 75 basis points were extraordinary steps to respond to very high inflation. We had to raise rates by 375 basis points, it was an important phase and inflation is indeed coming down. We have now reached the final stage of our monetary tightening journey, and so tlet’s go back to normality, at steps of 25 basis pointsDe Guindos explains. This was the decision taken by the Governing Council in the monetary policy meeting of May 4th.
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Interest rates over 4% in the summer
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