The ECB goes straight but doesn’t say too much about the future
For the president of the German Bundesbank after the Credit Suisse case it is possible that banks will become “more cautious” in granting loans following the nervousness of the market
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Joachim Nagelpresident of the German Federal Bank, declared that those who set rates must be “more stubborn” in the fight against inflation, writes the Financial Times today. Nagel supports continued rate hikes, dismissing concerns that the banking turmoil is spreading to Europe. The head of the German central bank has, in fact, said that the rate regulators of the euro zone must be “stubborn” and continue to increase the cost of borrowing to deal with inflation.
“Our fight against inflation is not over,” Nagel told British business newspaper after he and other members of the European Central Bank’s governing council they stuck to plans to raise interest rates by half a percentage point last week.
“There is certainly no doubt that price pressures are strong and widespread throughout the economy,” stressed the president of the Bundesbank. “If we are to tame this stubborn inflation, we will have to be even more stubborn.” Meanwhile, the Federal Reserve will decide today whether to continue raising interest rates, despite the collapse of US lenders. Analysts largely expect the Fed to raise US borrowing costs by a quarter point. After the Credit Suisse takeover on Sunday, March 19It is possible, Nagel said, that banks are becoming “more cautious” about lending amid market jitters.
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