Marcelo recommends ECB ‘big weighting’ in interest rate speech

The President of the Republic this Wednesday recommended that the European Central Bank (ECB) pay “great attention” to the speech on interest rates in order to avoid “concerns, unrest” in the life of Europeans.

Marcelo Rebelo de Sousa spoke to the media at the Faculty of Law of the University of Lisbon on the recent statements by the ECB President foreseeing further interest rate hikes.

When asked about these statements by Christine Lagarde, made in Portugal at the ECB forum in Sintra, the head of state began by saying that one should “wait for the development of inflation and the decision of the central banks.”

“But I also think central banks should be very careful what they say in public,” added Marcelo Rebelo de Sousa, who did not name the ECB president in his response.

“What is being said about interest rates requires a lot of thought. We see countries like the United States of America changing policies and not raising interest rates. We see that other central banks understand – and I respect their decisions – the opposite. It’s not worth it. It is a pity that at the moment this is creating more anxiety, anxiety in what is already a difficult life for many Europeans and a few Portuguese, ”he stressed.

The President of the Republic said that he remembers “recently hearing the central banks say that interest rates will not rise for a significant period of time” and that he now hears them “saying that it is possible that they could increase not only this year, but who knows next.

“It has a devastating effect on people, the economy and markets, which is not good for anyone,” he said.

Marcelo Rebelo de Souza refused to comment on the words of Christine Lagarde, linking the increase in wages with inflation: “I did not want to do what I think is not good.”

“What is required of governments and political authorities, all of them, as well as central banks, is to be very careful in your speech, because it is very sensitive to the daily life of people,” he insisted.

The head of state highlighted the impact of the increase in interest rates set by central banks on the lives of those who have mortgage loans.

“Raising interest rates means doubling or tripling the housing premium in record time, or fighting for the house and entering into a new consumer loan to balance out what is left in the house payment,” he said. .

Before journalists, the President of the Republic repeated that this is “a very delicate issue for Europe and Europeans, but for the world as a whole”, calling for caution “in predicting the future and indicating the keys to the future.”

Next to Marcelo Rebelo de Sousa was the Vice President of Brazil, Geraldo Alkmin, with whom he participated this Wednesday at the closing of the 11th Lisbon Law Forum at the Faculty of Law of the University of Lisbon.