The ECB could raise interest rates more than expected at its meeting on Thursday. The central bank has recently come under increasing pressure: according to informed sources, the European Central Bank (ECB) is considering raising interest rates more sharply. Instead of raising interest rates on Thursday by 0.25 percentage points for the first time in eleven years, as before, it could also be decided to increase interest rates by 0.5 points. informed people. An ECB spokesman declined to comment, citing the bank’s dormant phase, but the prospect of a possible 50 basis point rate hike is already boosting the euro. The common currency rose 1% to $1.0245 after the report. More recently, the common currency even fell below the value of a dollar for a short time.
Inflation in the euro zone continues to climb
According to insiders, the backdrop for possible considerations for a higher interest rate hike is high inflation in the Eurozone, which is currently at an all-time high of 8.6%. The main reasons for the rising prices are the war in Ukraine and the strangulation of Russian gas supplies, which have made natural gas much more expensive. Some experts therefore warn against an excessive increase in interest rates by the ECB, as this could put additional pressure on the economy.