The European Central Bank of the Central Bank rejected calls from politicians to tighten monetary policy and stated that they expect interest rates to remain low until they have restricted demand and weakened growth in order to lower inflation.
The comments issued by many members of the European Central Bank are resisting in charge of setting the interest rate, the idea that it can do “pessimistic axes” and stop raising interest rates soon, echoing a similar message from the US Federal Reserve last week.
According to the Financial Times, Joachim Nagil, the head of the German Central Bank, pledged to use all of his influence to make sure that the Foundation “will move forward in normalising monetary policy with determination, even if our procedures have weakened economic growth” in a speech on Tuesday.
Vice President of the European Central Bank Lewis de Gwindos stated that tightening financial conditions is necessary to combat inflation.
In the past four months, the European Central Bank increased the interest rate on deposits from 0.5% to 1.5%, and it is anticipated that it will announce another increase in December to at least 2%.
De Gendos said on Tuesday to Polutico that “the total demand will reduce consumption and investment, but it is the only possible way to move forward.” Because not doing anything will be much worse..
The European Bank anticipates interest rates to remain high until after the growth point.
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