ECB still hawkish: why and what to expect now

When will it reach 2%?

clock • 4 min read

The sole objective is 2% and step-by-step, the European Central Bank (ECB), like a tightrope walker, has been carefully calculating its moves, listening to its heart, looking for balance, adjusting its posture and deciding the next move to bring inflation back to its 2% target.

At the last meeting, the ECB decided to raise rates by 25 basis points, the same as the previous meeting. However, the ECB's decision to continue its hawkish policy comes with consequences. One example is the slowdown in bank lending. The constant hikes over the past year have weakened the demand for bank credit, causing a cascading slowdown in various sectors (real estate, construction) and consumer spending. Why does the ECB continue with its hawkish policy? The answer to this question is linked to high inflation levels and the differences among various countries in the eurozone. ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Gilts reach year-to-date high

Linus Uhlig
clock 30 October 2024 • 2 min read
Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

No extension of freeze in thresholds beyond 2028

clock 30 October 2024 • 3 min read
Market Movers Blog: Wall Street suffers losses as earnings reports drive tech sell-off

Market Movers Blog: Wall Street suffers losses as earnings reports drive tech sell-off

Latest news and analysis

Investment Week
clock 29 October 2024 • 1 min read
Trustpilot