Investors had begun to doubt the ECB’s commitment to another big rate hike this week after the collapse of Silicon Valley Bank sent ripples through global financial markets
European Central Bank policy-makers are leaning towards a half-percentage-point rate hike on Thursday, as the banking sector turmoil is dissipating, the euro zone economy is picking up strength and inflation is set to remain too high for years.
Futures on German government bonds, the euro zone’s benchmark fell after the Reuters report and ECB rate expectation rose, reversing course after the unusual volatility induced by SVB’s collapse.Although the market turmoil could make the ECB more cautious in outlining future rate hikes, its main problem, that inflation is far to high, has not changed.
Much of the inflation outlook hinges on wage growth, which is still catching up after rapid inflation, but the 5 per cent to 6 per cent expansion expected this year is inconsistent with 2 per cent inflation so moderation will be needed.“Slowly falling inflation rates and rising wages should lead to real wage growth again from mid-year at the latest and support the domestic economy,” Germany’s Ifo Institute said.
The ECB can push through decisions with a simple majority though President Lagarde has been known to seek the broadest possible consensus.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
What happened to Silicon Valley Bank, and what its collapse means for banks and investorsThe downfall of SVB and Signature Bank had implications for banking, investing and the economy. Here’s what to know about the Silicon Valley Bank collapse
Lire la suite »
Posthaste: Silicon Valley Bank collapse that shook the world reveal cracks emerging in the systemSilicon Valley Bank failure is an ominous reminder that when the Federal Reserve jacks up rates, things break.
Lire la suite »
Silicon Valley Bank’s Toronto branch seized by Canada’s banking regulator amid collapse | Globalnews.caU.S. banking regulators were forced on Friday to urgently close Silicon Valley Bank after billions of dollars were withdrawn by fearful depositors.
Lire la suite »
Canadian regulator seizes assets of Toronto branch of Silicon Valley BankOTTAWA — Canada's banking regulator says in light of the decision by the California Department of Financial Protection and Innovation to shut down Silicon Valley Bank, it has temporarily seized assets of the Canadian branch to preserve their value. U.S. banking regulators were forced to urgently close the California-based institution on Friday after billions of dollars were withdrawn by fearful depositors. In a statement, Canada's Office of the Superintendent of Financial Institutions says the b
Lire la suite »
Posthaste: Silicon Valley Bank collapse that shook the world reveal cracks emerging in the systemSilicon Valley Bank failure is an ominous reminder that when the Federal Reserve jacks up rates, things break.
Lire la suite »
Canadian regulator seizes assets of Toronto branch of Silicon Valley BankOTTAWA — Canada’s banking regulator says it has temporarily seized assets of the Canadian branch of Silicon Valley Bank.
Lire la suite »