ECB policymakers want to keep options open amid inflation uncertainty


Proponents of her case have been working to make the actual transcript of this statement available online.

The ECB has been anticipating how eurozone prices will rise this year as the economy recovers due to the coronavirus epidemic. Members of the central bank’s governing body said they expected to see it again in 2022 in December, according to minutes about his October meeting, published Thursday.

But council members acknowledged that there was “uncertainty” about the rise in inflation in 2023 and 2024, which is one of the measures the central bank will use to try to buy bonds and interest next year.

He believes that this means they have to keep “choices” in their future purchases as much as possible, in order to be able to respond if inflation drops below what they want or beyond.

“While the increase in the risk of inflation should be justified, it was seen as necessary for the governing body to avoid excessive and inappropriate action, and to maintain adequate opportunities to streamline its financial procedures to alleviate any problems of inflation. It could be disclosed,” it said.

The fall in Eurozone prices reached 13 4.1 percent in October, above the ECB’s 2 percent target, prompting some to speculate that the ECB will raise prices next year.

But the ECB acknowledged last month that many of the factors driving inflation this year – including rising electricity prices and barriers – could end next year, albeit at a slower rate than previously reported.

“The members were very much in tune with the movement which is expected to be like a hump on short-term ideas,” it said.

The ECB is becoming more and more popular split from other major central banks, such as the US Federal Reserve and the Bank of England, which have responded to the recent rise in inflation by promising to tighten the policy.

The December ECB meeting is eagerly awaited by investors. Many expect the central bank to decide that its € 1.85tn procurement program, which was launched last year to end the epidemic, will stop buying new ones in March 2022.

However, the central bank is expected to expand its long-term procurement program to mitigate the cut costs.

Some members of the Conservative Council say the ECB should be prepared to suspend its purchase of new bonds next year if inflation does not fall below expectations.

However, some have urged patience, saying there have been few signs of increase in pay.

Council members concluded last month that they “should be patient because of the high level of uncertainty,” the ECB said. “It was felt that it was important that the governing body should have the opportunity to make a decision in order to be able to take action in the future.”

Jacob Nell, Europe’s chief economist at Morgan Stanley, said the shocks, coupled with recent closed-risk risks in several European countries, showed that the ECB could choose to “reduce purchases, and keep options” in December. meeting.

Fabio Balboni, an economist at HSBC, said: “Due to the growing divisions in the governing body and the uncertainty surrounding the inflation outlook it may be difficult for the ECB to commit to long-term support.”


Original Article reposted fromSource link

Disclaimer: The website autopost contents from credible news sources and we are not the original creators. If we Have added some content that belongs to you or your organization by mistake, We are sorry for that. We apologize for that and assure you that this won’t be repeated in future. If you are the rightful owner of the content used in our Website, please mail us with your Name, Organization Name, Contact Details, Copyright infringing URL and Copyright Proof (URL or Legal Document) aT spacksdigital @ gmail.com

I assure you that, I will remove the infringing content Within 48 Hours.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

politics

Can EU’s Global Gateway strategy compete with Beijing? | European Union

Movie Time 25 minutes 15 seconds 25:15 From: Internal Issue The European Union’s strategic direction is seen as a challenge for the China Belt and Road Initiative. The European Union (EU) has established a system that is described as a global financial system. The Global Gateway route seems to be a challenge for China’s Belt […]

Read More
politics

Blinken warns Russia of ‘severe costs’ if it invades Ukraine | Crimea News

US Secretary of State Antony Blinken has warned Moscow of “high prices and potential consequences” for the offensive in Ukraine, and urged his Russian counterpart to withdraw from the crisis. Blinken on Thursday issued a warning to Russian Foreign Minister Sergey Lavrov over what he called ” “true” meeting. in Stockholm, Sweden. He announced that […]

Read More
politics

Ruby Freeman and Daughter Sue Gateway Pundit for Posting Video of Her Shoving Ballots Through Voting Machines Numerous Times

On Wednesday Georgia election officials Ruby Freeman and his daughter Wandrea “Shaye” Moss sued The Gateway Pundit, Jim Hoft and Joe Hoft for conducting a “false campaign” against the two women who sparked online and in-person harassment. women. We read this earlier today from The New York Times, Washington Post, NBC News, Yahoo, Reuters and […]

Read More