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(ABM FN-Dow Jones) Rising energy prices could force the European Central Bank to act to contain inflation. This is what ECB executive Isabel Schnabel said during a speech at the American Finance Association 2022 Virtual Annual Meeting this weekend.
Schnabel noted that the global economy was hit by a “major energy crisis” last year after oil and gas prices soared as economies reopened after the lockdowns.
The ECB executive said that rapidly rising energy prices are not an unknown phenomenon. However, where in the past those prices often fell just as quickly, Schnabel fears that this may be different now. “The need to step up the fight against climate change may mean that fossil fuel prices must now not only remain high, but even continue to rise in order to achieve the goals of the Paris climate agreement,” said Schnabel. Then only the most vulnerable should be protected, she added.
And central banks, in turn, should consider what risks this poses to price stability and whether rising energy prices have “an acceptable” impact on headline inflation, Schnabel said. There are cases, Schnabel said, where central banks can no longer ignore high energy prices.
Bron: ABM Financial News–
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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Oh well, the January inflation year on year must in any case be about 10% because the new year’s passing on actual inflation is noticeable everywhere.
Whether it’s the lavazza coffee beans 500gr at the AH, from 7.19 to 8.19 or at the Jumbo from 6.97 to 7.67…
Or the local shoarma tent where everything has become more expensive between 7 to 14% and it runs better because of corona, so no pity there either, just like at the supermarkets.
Other restaurants that npg do not take away or even deliver for that long also clearly increase further, but you give it a little more given the circumstances.
But of course those prices are no longer going down because that’s just how it works and since the salaries still only increase by 3% on average, you just go down 7% AGAIN.
But the ECB shouts that inflation will fall again and yes eventually it will certainly be the case one day, but in the meantime this is with even negative interest rates, central banks are still printing and it is not left to go with another program and of course the capital gains tax is very damaging.
But now maybe do something more ECB??
I wonder how much these fatheads themselves gain at the ECB.
A reduction would be more just for this mismanagement.–
“In an environment of large savings surpluses and prolonged energy supply disruptions, the energy transition could lead to inflation remaining elevated for longer,” Schnabel warned in a speech to the American Economic Association. She immediately said that the ECB may have to intervene if necessary.”
A) A quick, unexpected interest rate hike?
B) A quick, unexpected interest rate cut?
C) Even more, even longer buying problem paper?We are waiting for reports from Turkey that inflation there has fallen by 12% due to the intervention of the Turkish central bank (so wait at a bus stop until a steamboat passes)
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