European Central Bank will continue to raise its rates

He European Central Bank (ECB) will continue with interest rate hikes in July, reported Christine Lagarde, president of the central bank of the European Union countries.

“Our work is not done. Unless there are major changes to our outlook, we will continue raising rates in July,” he said during an ECB forum in Sintra, Portugal.

A year ago, the ECB began an unprecedented cycle of monetary adjustment to counter the rise in prices, and despite the fact that some voices call for a pause so as not to put more pressure on economic activity, Lagarde warned that it is “very likely” the prospect of an increase due to the “too fast turn of monetary policy” facing a “process of inflation more persistent” in the euro area.

He also highlighted the “uncertainty” surrounding the effect of his policies, both in their “duration” and in their level.

It should be noted that, at the last monetary policy meeting in June, the institution made the decision to carry out the eighth increase in its rates in less than a year, raising the reference rate for deposits by a quarter of a percentage point to reach 3.5%.

“In the near future, it is unlikely that the central bank can say with certainty that interest rates have peaked.” added the ECB president.

Euro rises after announcement

Following the statements, the euro rose against the dollar, from US$1.0903 to US$1.0952 and, finally, the ECB set the reference exchange rate for the euro at US$1.0951. Previously, the improved mood in the markets also boosted purchases of euros and their price.

However, previously, the European currency once again lost some positions against the dollar after the publication of positive data from the United States housing market, which presented an increase of 12.2% for May, and from consumer confidence.

Data

Trend. Jerome Powell, Chairman of the Fed, reported that. after a break in June, in the coming months, interest rates would have a rise in the US