Key interest rates in the United States (US) rose another 0.25 percentage point (pp), pushing the central refinancing rate to 5% to 5.25%, the Federal Reserve (Fed) announced yesterday.
Today, there are also more analysts who expect the European Central Bank (ECB) to do the same by raising its central reference rate from 3.5% to 3.75%, meaning it will slow down the tightening of interest rates, they note . different analysts. The last increase, in March, was 0.5 percentage point.
Until March, inflation in the Eurozone remained very high (well above 8%), but there were already signs that it could ease after that.
That’s what happened: in March, the pace of prices fell significantly, to 6.9%, according to Eurostat.
In April, inflation interrupted the decline (up slightly to 7%) that had lasted for five consecutive months, following a record 10.6% in October.
Some economists today are still leaning towards a possible 0.5 point increase, but many believe that the authority led by Christine Lagarde will already be able to slow the pace of interest rate tightening and are now speaking of a increase of 0.25 point, the devaluation of the upward rise in inflation in April.
Source: DN
