The situation in the financial markets has calmed down compared to the strong turmoil that accompanied the March meeting.
He European Central Bank (ECB) will probably slow down the pace of its interest rate hikes on Thursday, a quarter point percentage, because their previous increases are already reaching the real economy.
The Governing Council of the ECB meets to decide what to do with the interest rates at a time when the situation in the financial markets has calmed down compared to the strong turmoil that accompanied the March meeting.
The headline inflation increased in the euro area in April one tenth compared to March, up to 7% year-on-year, but the core, which discounts energy, food, alcohol and tobacco because they are more volatile, fell one tenth, to 5, 6%, the first drop in several months.
The ECB published data this week showing that lending to businesses slowed in the first quarter and that demand for business loans and mortgage loans has fallen.
Banks are also forecasting a further sharp decline in demand in the coming months.
The ECB started raising its interest rates in July of last year and has increased them ever since. six consecutive timesfrom 0% to the current 3.5%.
The US Federal Reserve raises rates 0.25 points
For its part, the United States Federal Reserve also announced yesterday an interest rate hike of 0.25 points. This new rise places the rates in a range of between 5 and 5.25%. The Fed has not announced if it would be the last hike.
Source: Eitb
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