Money ECB Director - Despite high inflation low interest retained

15:35  13 september  2021
15:35  13 september  2021 Source:   de.reuters.com

Euro area inflation at the highest level for nine years: Graph

 Euro area inflation at the highest level for nine years: Graph (Bloomberg) - Data from Tuesday should show that consumer prices in the Eurozone in August reflect the fastest inflation for nine years and thus significantly above the European Central Bank are 2% targeted in the medium term. So far, the political decision-makers have argued that the increase in inflation was temporary and largely at one-time effects.

Berlin (Reuters) - Despite increased inflation, the ECB should not be able to lure the reserve out of the reserve according to the central bank director Isabel Schnabel.

ARCHIV: EZB-Notenbankdirektorin Isabel Schnabel in Frankfurt am Main, Deutschland, 22. November 2019. REUTERS/Ralph Orlowski © Reuters Archives: ECB Reserve Director Isabel Schnabel in Frankfurt am Main, Germany, November 22, 2019. Reuters / Ralph Orlowski

An early streamlining would be "poison for the current upswing", explained the German economist on Monday on the occasion of the Baden-Baden entrepreneurship. The ECB's strut that the inflation rate is permanently sustainable at two percent to sustainably pave the way from the low interest rate environment. "This condition is not yet fulfilled for the present time despite the currently high inflation rates," said beak.

inflation climbs to the highest value for almost 28 years

 inflation climbs to the highest value for almost 28 years Berlin. Inflation scratches at the four percent mark. After the strong price jump in July, the inflation rate continued to increase to 3.9 percent in August. That informed the Federal Statistical Office. © Friso Gentsch Coins are kept over a wallet (symbol image). There was a stronger price supply last time after the German reunification - in December 1993 with 4.3 percent at that time. Economists had calculated with a value of 3.9 percent, after an inflation rate of 3.8 percent in July.

In August, annual taxation in the euro area was three percent. It is a concern to take care of the people that inflation will remain permanently too high or even shoot uncontrollably to the height, stressed beak: "In all likelihood, inflation will weaken again in the coming year."

Bundesbank President Jens Weidmann had recently warned not to lose sight of the risk of too high inflation. Offer bottlenecks could trigger additional price cuts. Austria's central bank boss Robert Holzmann declared recently, the ECB could possibly exit faster from her years of ultra-skating monetary policy than many thoughts. A sustainable increase in inflation and inflation expectations in the direction of the ECB target is desirable.

The barometer for long-term inflation expectations in the euro zone has recently increased. The so-called five-year-five-year-forwarder at times reached 1,8207 percent on Monday and thus the highest level since mid-2015. This means that investors in the financial markets for the future over the period between 2026 and 2031 average expansion rate of something Expect more than 1.8 percent. Schnabel referred to the fact that financial market participants had expected only an inflation rate in the euro area of ​​about 1.3 percent in the long term shortly before the outbreak of the pandemic.

The ECB's economists assume in their recent prognosis that the inflation rate will reach 2.2 percent this year. For 2022 you expect 1.7 percent and for 2023 another decline to 1.5 percent. The ECB has decided in view of the economic recovery in the euro area to moderate the pace of its large-scale emergency bond purchases. The key interest rate deposited on the record low of 0.0 percent. There he has been there since March 2016.

Consumer prices: OECD raises the inflation forecast to .
The consequences of the pandemic for the price structure will still be felt in 2022. Nevertheless, the organization further recommends monetary policy support for growth. © dpa The consequences of the pandemic will also be felt in the coming year. The OECD has raised its inflation forecast for the G20 countries. It is now expecting consumer prices throughout 2021 by 3.7 percent and 2022 by 3.9 percent.

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