Brookings Institution
The ECB, as anticipated, raised all three primary interest rates by 25 basis points last week. The deposit rate currently stands at 2.25% annually. The regulator additionally increased its inflation prediction for the eurozone this year to 3% from the earlier forecast of 2.6%.
The choice was made prior to reports that Iran and the US had come to an agreement to cease hostilities in the Middle East and resume shipping traffic via the Strait of Hormuz. Energy prices have decreased since then, but Lane observed that they have not yet gone back to levels seen before the war.
Lane stated that whether rates will be increased further or kept the same will rely on the data that comes in.
source: ft.com
The choice was made prior to reports that Iran and the US had come to an agreement to cease hostilities in the Middle East and resume shipping traffic via the Strait of Hormuz. Energy prices have decreased since then, but Lane observed that they have not yet gone back to levels seen before the war.
Lane stated that whether rates will be increased further or kept the same will rely on the data that comes in.
source: ft.com
