On Thursday, the central bank council will discuss the future course of monetary policy.
(Photo: dpa)
Frankfurt There has been a kind of déjà vu experience for central bankers in recent months when statisticians publish new inflation figures. The values were always higher than the central banks had expected, as if an event were repeated over and over again.
This is also the case in the euro area, where inflation reached a record 7.5 percent in March. With each passing month this trend continues, it puts the European Central Bank (ECB) in a more difficult position. At the central bank’s council meeting this Thursday, there should therefore be controversial debates about the further course.
In March, the ECB decided to end its bond purchases in the summer. This is a prerequisite for interest rate hikes. So far, however, she has not committed to an increase and only emphasized that her further decisions will depend on future data. However, this approach is not without risk.
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