Interest Rates

Michael Savage: ECB may have little choice but to start hiking interest rates again

ECB president has hinted that the central bank’s hiking cycle may have concluded but inflation is still stubbornly high

Christine Lagarde, ECB President: the bank has continued to increase rates in recent months to reduce demand in the economy

Inflation in the eurozone has been running above target for 27 consecutive months. It peaked at 10.6 per cent in October last year and remains well above target at 4.3 per cent right now. The European Central Bank has responded by undertaking an unprecedented interest rate hiking cycle, shifting its deposit rate from -0.5 per cent to 4 per cent in little over a year.

After its September meeting, Christine Lagarde, the president of the ...