The European Central Bank decided Thursday to keep interest rates and its monetary policy stance unchanged despite ongoing inflationary pressures.
The central bank had announced in September it would be buying less bonds off the back of surging consumer prices.European Central Bank President Christine Lagarde.decided Thursday to keep interest rates and its monetary policy stance unchanged despite ongoing inflationary pressures.
However, not everyone agrees with the central bank. Speaking to CNBC on Wednesday, James von Moltke, chief financial officer at Deutsche Bank, said that inflation "will be more than transitory." The central bank's Covid-19 stimulus program — known as the Pandemic Emergency Purchase Program or PEPP — is due to end in early March next year. So, many analysts are expecting a readjustment in the bank's stimulus ahead of that.
In addition, when it comes to interest rates, some market players believe that the ECB is underestimating inflationary pressures and will therefore likely have to announce a rate hike before the end of next year.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
European Central Bank expected to hold steady as economy slows and inflation soarsSlowing growth and higher inflation could render October's ECB meeting more eventful than originally anticipated.
Read more »
Europe stocks set to open mixed as investors monitor earnings and ECB rate decisionEuropean stocks are set for a muted open Thursday as investors digest corporate earnings and look ahead to a rate decision by the European Central Bank.
Read more »
Japan stocks set to slip ahead of central bank monetary policy decisionThe Bank of Japan is set to announce its latest monetary policy decision on Thursday.
Read more »
BOJ cuts growth, price forecasts; keeps policy steadyThe Bank of Japan kept monetary policy steady on Thursday and slashed this year's inflation forecast in a sign that it has no intention any time soon of following other central banks in preparing an exit from crisis-mode policies.
Read more »
U.S. Consumer Confidence Rose as Delta Covid-19 Wave EasedAn index of consumer confidence climbed in October after months of declines as the wave of Covid-19 cases due to the Delta variant started to ease
Read more »