Inflation is expected to average 5.3% this year, 2.9% in 2024 and 2.1% in 2025.
The European Central Bank on Thursday, March 16, raised all three key interest rates by 50 basis points. The base interest rate on loans increased to 3.5%, the rate on deposits – up to 3%, the rate on margin loans – up to 3.75%. This was reported on the ECB website.
Eurozone inflation is expected to remain “too high” for a long time. Prices are expected to rise above the 2% target by 2025, a major concern for many ECB leaders.
Inflation is expected to average 5.3% this year, 2.9% in 2024 and 2.1% in 2025. As mentioned in the ECB, these forecasts are generated for the current turmoil in the markets.
“The Governing Council of the ECB is closely monitoring the current market tensions and is ready to take the necessary steps to ensure price and financial stability in the euro area. The European banking sector is strong, the adequate capital and liquidity of banks is strong,” said the message.
Recall that on March 10, the US financial regulator closed the California Silicon Valley Bank. His bankruptcy was the largest since the financial crisis of 2008. Following SVB, the American authorities shut down New York Signature Bank.
Global financial stocks lost $465 billion due to SVB’s bankruptcy
And European banks suffered 20% due to the collapse of Credit Suisse shares.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.