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ECB does not rule out an interest rate hike this year

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ECB does not rule out an interest rate hike this year

UNITED STATES, WASHINGTON (TRADING SIGNAL GROUP) – The European Central Bank (ECB) could raise interest rates this year, although its guidance leaves it plenty of leeway on the timing of such a move, ECB member Frank Elderson said on Thursday. ECB Board of Directors.

“I wouldn’t rule out a raise sometime this year,” Frank Elderson said at a financial event.

The ECB announced that a rate hike would come “some time” after the end of bond purchases, expected in the third quarter, which, according to Frank Elderson, could imply a gap of several months between the two measures.

Regarding inflation, he estimates that it could remain above the 2% target set by the institution “for a good part” of 2023 even if oil prices do not increase further.

The consumer price index accelerated in February to reach a historic high of 5.9% over one year, under pressure from the persistent rise in energy prices, favored by the war in Ukraine.

In its latest estimates, the ECB raised its inflation forecast to 5.1% for this year from 3.2% previously and to 2.1% from 1.8% for 2023.