{"id":20312,"date":"2023-04-27T13:48:49","date_gmt":"2023-04-27T13:48:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/not-the-right-time-to-stop-rate-hikes-ecb-chief-economist-says-finance-bitcoin-news\/"},"modified":"2023-04-27T13:48:49","modified_gmt":"2023-04-27T13:48:49","slug":"not-the-right-time-to-stop-rate-hikes-ecb-chief-economist-says-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/not-the-right-time-to-stop-rate-hikes-ecb-chief-economist-says-finance-bitcoin-news\/","title":{"rendered":"\u2018Not the Right Time to Stop\u2019 Rate Hikes, ECB Chief Economist Says \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Current indicators suggest the European Central Bank (ECB) should raise the interest rate in May, the monetary authority\u2019s chief economist said. Future increases will depend on the economic data but this is still not the right time to stop, according to Philip Lane who believes the bank has to bring inflation back to the 2% target \u201cin a timely manner.\u201d<\/strong><\/p>\n

Leaving Interest Rate at Current Level Would Be \u2018Inappropriate\u2019 Despite Falling Inflation, Lane Says<\/h2>\n

Inflation in the euro area has dropped significantly between October, when it peaked at 10.6%, and March\u2019s 6.9%. Nevertheless, the most important goal for its central bank is to make sure that it gets closer to 2%, Chief Economist of the ECB Philip Lane told Le Monde in a recent interview published<\/a> by the bank on Tuesday.<\/p>\n

While easing in some sectors, such as energy, inflationary pressures persist in others, like food, the top official noted, warning there\u2019s a risk of \u201csticky\u201d inflation. This is why it\u2019s important that the ECB raises its interest rates again to ensure inflation returns to the target \u201cin a timely manner,\u201d he emphasized.<\/p>\n

Inflation has been too high for almost two years, Lane admitted, attributing it to bottlenecks created by the pandemic and the energy shock resulting from Russia\u2019s invasion of Ukraine. To deal with it, the ECB increased interest rates by 3.5 percentage points, from -0.5% to 3%, which is unprecedented for the eurozone.<\/p>\n

\u201cFor our next Governing Council meeting on May 4, the current data are indicating that we should raise rates again,\u201d said Philip Lane who sits on the bank\u2019s Executive Board. He added that the analysis suggests it would be \u201cinappropriate\u201d to leave the deposit rate at the current 3% level and stressed:<\/p>\n

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This is still not the right time to stop. Beyond that, I don\u2019t have a crystal ball, it will depend on the economic data.<\/p>\n<\/blockquote>\n

The most important task is to bring inflation closer to 2% \u201cwithin a reasonable time period,\u201d ECB\u2019s chief economist reiterated. The longer it stays too high, the greater the risk that people lose faith in the bank\u2019s ability to return to its long-term target, he reasoned.<\/p>\n

Lane\u2019s statements for the French press come after several central bank governors, members of the ECB\u2019s Governing Council, indicated<\/a> in the past few weeks that a new rate hike is to be expected from the upcoming meeting next month.<\/p>\n

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Central Bank<\/a>, chief economist<\/a>, ECB<\/a>, EU<\/a>, Euro<\/a>, Europe<\/a>, Eurozone<\/a>, Hike<\/a>, hikes<\/a>, increase<\/a>, inflation<\/a>, Interest<\/a>, interest rate<\/a>, Lane<\/a>, Philip Lane<\/a>, Prices<\/a>, Raise<\/a>, rate<\/a>, rates<\/a><\/div>\n<\/div>\n

By how much do you think the ECB will increase interest rates in May? Share your predictions in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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