European Central Bank officials "strongly responded" to inflation: even if economic recession, it is necessary to raise interest rates sharply

【Source: Nine Pai News】

According to foreign media reports, on August 27th, local time, the European Central Bank Executive Committee and German economist Isabel Schnabel said at the Jackson Hall Global Central Bank Annual Conference that continued high inflation and might bring brings to brings to bring The potential threats to come are disturbing, and the European Central Bank needs to take more powerful actions: continuously raising interest rates, even when facing the risk of slowing growth and rising unemployment rates.

France's president of France, Francois Villeroy de Galhau, supported: "We can take a gradual method, but we cannot slow down the pace of interest rate hikes, and we cannot wait for a higher level of inflation to inflation at a higher level of inflation Rate rate rates will postpone the normalization of monetary policy, reducing the inflation rate to 2%is the responsibility of the European Central Bank. "

According to data previously released by the EU Statistics Bureau, the inflation rate of 19 countries using the euro in July was 8.9%, exceeding 8.6%in June, a record high. In order to suppress inflation, the euro zone officially started the interest rate hikes from July, and 50 basis points raised interest rate hikes at a time, bid farewell to the currency easing policies that have persisted for many years.

The European Central Bank Management Committee member Martins Kazaks said at the global central bank's annual meeting that the euro zone is likely to decline now, but this will not lead to a decline in inflation. As for the 50 basis points of interest rate hikes or 75 basis points, they can be discussed.

Five sources who understand the discussion say that the prospects of inflation are deteriorating, and European Central Bank officials intend to discuss 75 basis points in the September policy meeting. One source said: "If the Fed does so, the European Central Bank must follow up." Another source said: "If we do not raise interest rates, will energy become cheaper? No. In fact, it might be possible It becomes more expensive, because the euro may fall, and the energy price is denominated in the US dollar. "

However, according to a source quoted by Reuters, the correlation between interest rate hikes and economic growth is yet to be observed, because the economic recession is mainly due to the impact of supply, that is, the rise in energy prices and the shortage of natural gas. very effective. However, sources also said that economic recession may alleviate the price pressure of some commodities and help the European Central Bank back to 2%of inflation targets.

Jiupai journalist Liang Xia

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