The ECB President and her colleagues could decide on a record rate hike.
(Photo: imago images/Frank Ossenbrink)
Frankfurt In recent months, the European Central Bank (ECB) has implemented a drastic change of course. At the beginning of the year, Federal Reserve Chair Christine Lagarde dismissed the prospect of interest rate hikes. They have long since become reality. And before the Council meeting on Thursday, the only question is to what extent the ECB will follow suit.
The markets are expecting an increase of 0.75 percentage points to 1.25 percent for the key interest rate and 0.75 percent for the currently even more important interest rate that banks receive for their deposits at the ECB. This would be the largest hike in the history of the central bank.
In view of the surprisingly high inflation figures again, the probability of this has recently increased. Several Council members have already signaled their support for it. Including representatives who were previously considered “doves”, i.e. advocates of loose monetary policy. As a result, the majority in the ECB Council has shifted more in the direction of the “hawks”, who advocate a tough monetary policy.
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