by Niels Saelens
published on Saturday, August 26, 2023 at 4:11 pm •
4 min reading
In September, the board members of the European Central Bank (ECB) will meet again to discuss interest rate policy. There is a chance that the monetary institution will hit the pause button, but that is not a certainty. “It is critical that inflation falls to 2 percent,” Christine Lagarde, president of the ECB, said Friday in a conversation with Bloomberg TV.
Why is this important?
The interest rate hikes by the ECB put pressure on economic growth in the eurozone. It has been very minimal in recent months. Earlier this year, the eurozone narrowly avoided a recession. Pressure on the monetary institution is mounting to halt rate hikes. But switching too quickly could cause inflation to gain momentum again. The ECB faces a delicate balancing act.
Context: The Federal Reserve’s Jackson Hole Conference is currently taking place. Board members of various central banks, including Lagarde, will be present during that event.
The central bankers have used this conference several times in the past to make important policy statements. Fed chair Jay Powell and ECB board member Isabel Schnabel, for example, declared war on skyrocketing inflation last year. During his speech in 2014 b
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2023-08-26 14:11:24
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