Christine Lagarde

Finance Minister Michael McGrath Urges Caution for ECB Interest Rate Hikes Due to Real-Life Impact on People and Businesses

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Finance Minister Michael McGrath Urges Caution for ECB Interest Rate Hikes Due to Real-Life Impact on People and Businesses

Finance Minister Michael McGrath has advised the European Central Bank to exhibit caution and consider the impact of raising interest rates on households and firms. He has urged businesses to contribute to the fight against inflation by cutting prices. McGrath shared this sentiment during his meeting with ECB officials in Stockholm, stating that the monetary … Read more

How Higher Interest Rates Combat Inflation: Impact on Economy and Individuals

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How Higher Interest Rates Combat Inflation: Impact on Economy and Individuals

In the fight against inflation, central banks like the ECB use higher interest rates as their primary weapon. By increasing borrowing costs, consumer spending decreases, and demand in the economy falls, resulting in less money and easing inflation. However, this time around, inflation was caused by higher energy prices and supply chain problems, not consumer … Read more

Mismanagement and Bankruptcy: Banks at the Forefront After Credit Suisse and Silicon Valley’s Downfall

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Mismanagement and Bankruptcy: Banks at the Forefront After Credit Suisse and Silicon Valley’s Downfall

The successive crises related to banks that the world has witnessed in the past years, the most recent of which is the collapse of Credit Suisse and Silicon Valley banks, with the required government intervention, raises questions about the way banks work, which sometimes poses grave risks to the economy. The giant Swiss bank and … Read more

Lagarde affirms that Europe’s banking system is robust and firm.

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Lagarde affirms that Europe’s banking system is robust and firm.

European Central Bank President Christine Lagarde on Friday reaffirmed the strength of the eurozone’s banking system to European leaders meeting as part of a summit, as fears of a financial crisis dragged markets. Lagarde assured the leaders of states and governments meeting in Brussels that “the banking sector in the euro area is resistant because … Read more

After Credit Suisse’s €3bn rescue, ECB is prepared to assist banks.

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After Credit Suisse’s €3bn rescue, ECB is prepared to assist banks.

The European Central Bank (ECB) has announced its readiness to support banks after the $3 billion rescue of Credit Suisse by its Swiss counterpart, FINMA. The move follows recent concerns over the stability of the banking sector in Europe, which have been intensified by the ongoing COVID-19 pandemic. With the ECB standing ready to provide … Read more

Markets reduce their expectations for additional ECB rate hikes following a 0.5 point increase.

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Markets reduce their expectations for additional ECB rate hikes following a 0.5 point increase.

The European Central Bank (ECB) has recently announced an increase of half a percentage point in interest rates, taking the headline rate to 1.25%. However, this unexpected move has led to market players dialing down their expectations for any further rate hikes in the near future. This article explores the reasons behind this shift in … Read more

Irish Prime Minister Unfazed About Banks Amid Market Turbulence Caused by Credit Suisse

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Irish Prime Minister Unfazed About Banks Amid Market Turbulence Caused by Credit Suisse

The Taoiseach of Ireland, Micheál Martin, has remained calm and assured in the face of recent market jitters, which have been sparked by Credit Suisse’s involvement in a series of hedge fund losses. Despite concerns about the stability of Irish banks, Martin has stated that he is “not concerned” about the impact of the Credit … Read more

The Fed raises rates by half a point and is ready for more hikes – Economy

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The Fed raises rates by half a point and is ready for more hikes – Economy

The Fed raises rates by half a percentage pointclosing 2023 with the first hit of the brakes on a maxi-squeeze that saw four consecutive increases by 75 basis points. A move that acknowledges the slowdown in inflation (7.1% in November) and the slowdown of the economy, but is not a prelude to a stop: the … Read more