By our economics editors
Sep 28, 2023 at 8:49 AM Update: 39 minutes ago
Many analysts expect the European Central Bank (ECB) to take a break after the series of ten interest rate increases. But Dutch ECB director Frank Elderson thinks that interest rates can rise further in October.
The American, British and Swiss central banks recently decided to end their long series of interest rate hikes. They pause interest rate increases that should slow inflation, because otherwise they would damage the economy more than necessary. Interest rate increases also slow down economic growth.
The ECB raised interest rates for the tenth time in more than a year in mid-September. Many analysts expect European bank executives to also take a break at the October meeting. But Dutch director Elderson thinks that interest rates can rise even further, he said in an interview with the financial news agency Market News International.
According to Elderson, you cannot yet say that the interest rate increases have come to an end. Interest rate decisions depend on many different economic factors, the Dutchman emphasizes. Moreover, there are still many uncertainties. For example, inflation could rebound if energy prices rise again.
This week, bank executives will be eagerly awaiting new figures on inflation in euro countries. Economists expect a decline in inflation: from 5.2 percent in August to 4.5 percent in September. If the figures are disappointing, there may be more enthusiasm for the next interest rate increase.
Sep 21, 2023 at 1:52 p.m
Like Americans, the British are pausing series of interest rate increases
Sep 14, 2023 at 2:16 p.m
ECB raises interest rates for the tenth time to the highest level ever
Image: EPA
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2023-09-28 06:49:48
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