interest rate setters should be “stubborn” in the fight against inflation -FT | – #interest #rate #setters #stubborn #fight #inflation

March 22 (Reuters) – Eurozone politicians must be “stubborn” and inflation need to continue to raise borrowing costs to combat

These statements, some investors bank amid calls to hold off on policy tightening until the turmoil in the sector subsides, Europe Central Bank last week inflation It came after raising interest rates by 50 basis points, continuing to fight with.

“We’re not done with inflation yet,” Nagel told the paper, adding that he had no doubt that “price pressures are strong and broad-based in the economy.”

“There’s still a way to go, but we’re getting close to restrictive territory,” he said, adding that once the ECB stops raising rates, it will have to resist calls to cut them.

After the commotion, Nagel said Europe it is possible that banks are more cautious in lending.

But he dismissed concerns that it could affect them, saying the region credit He said it was “too soon” to conclude that he was heading for a crisis.

Confusion USAwith the bankruptcy of Silicon Valley Bank and Signature Bank, its mid-sized lenders, and investors bank worried about other ticking bombs in their system, they quickly cornered Credit Suisse.

Reporting by Kanjyik Ghosh in Bengaluru; Edited by Christian Schmollinger and Clarence Fernandez

Our standards: Thomson Reuters Trust Principles.

2023-03-22 11:08:35
Source – reuters

Translation“24 HOURS”