The markets will test today the bet of christine lagarde, President of the European Central Bank (ECB), which reflects the entity’s determination in its fight against inflation. The institution raised interest rates again on Thursday by half a percentage point, to 3.5%. It’s about the sixth consecutive rise of the price of money, which reached its highest level at the end of 2008.

Despite this, the euribor at twelve months, the indicator most used to calculate mortgages in Spain, fell yesterday to the lowest since January in the daily rate, but even so, it continues to rise in March. The indicator fell sharply, to the lowest since last January 27, since it stood at a daily rate of 3.359%. Even so, the monthly rate for March, which is used to review and calculate mortgage payments, remains on the rise, at 3.78%, higher than the 3.534% at which February closed.

On the other hand, the crisis of Credit Suisse took a breather on Thursday since the entity closed the session with a strong rise of 20%, after having lost in the wednesday debacle 24%, a partial recovery caused by the support shown by the Swiss National Bank, which in the early morning promised to clean up the battered accounts of the second largest financial institution in the country with a loan of 54 billion dollars.

“The euro area banking sector is resilient and has solid capital and liquidity positions,” the ECB Governing Council has defended, adding that, in any case, the ECB has all the necessary monetary policy instruments to provide liquidity to the euro area financial system if necessary and to preserve the smooth transmission of monetary policy.

Many analysts believe that the institution will adopt a lower rate of rise in the price of money in future meetings, including Eiko Sievert, director of sovereign ratings at Scope Ratings; Anthony Wood Ethi Finance Ratings; analysts of bury; Anna Stupnytska, global macroeconomist at Fidelity International and Víctor Alvargozález, director of strategy and founding partner of Nextep Finance.

For her part, the Vice President and Minister of Labor and Social Economy, Yolanda Diazhas gone a step further and has ensured that the ECB “must abandon the path of increasing interest rates.”

However, the ECB president has assured that the Governing Council’s decision to raise rates is “robust and necessary” and has limited herself to stressing that future decisions by the central bank will depend on the data.

Source: Eitb

Alia

Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.