The ECB will not stop at a single rate hike of 0.5%
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Member of the Governing Council of the European Central Bank (ECB) and head of the Central Bank of the Netherlands Klaas Knot said in an interview with the TV channel CNBCthat the ECB “definitely will not stop at a one-time rate hike of 0.5%.”
Currently, market participants expect that at its next meeting, which will be held in Frankfurt on February 2, the ECB may announce a 0.5% increase in the discount rate at once, while a more traditional increase of 0.25%. Judging by the words of Mr. Knot, even such a significant increase in the rate will not be one-time.
The ECB is actively raising interest rates to fight inflation, which in recent months, although somewhat slowed down, but still remains high for the EU – 9.2%. Last year, the ECB raised the rate four times, bringing it to 2%.
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