Print Magazine
Brussels Morning Newspaper
Tuesday, August 16, 2022
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home Economy

EBC claims policy reversal would be counterproductive

Nikola Kiš by Nikola Kiš
8 November 2021
in Economy
EBC claims policy reversal would be counterproductive
Share on FacebookShare on Twitter

Brussels (Brussels Morning) European Central Bank (ECB) Chief Economist Philip Lane claims that reversing the bank’s expansive monetary policy would be counterproductive.

Such a move would not help bring rising inflation under control, but would instead have the opposite effect, he stressed, confirming the ECB’s policy stance, Reuters reported on Monday.

The ECB is targeting an inflation rate of 2%, whereas the figure exceeded 4% last month, more than double the target. The bank has come under increased pressure to scrap its expansive monetary policy and to raise interest rates, which remain at record-low levels.

While the ECB insists it will not rethink its policy, markets have nonetheless priced an interest rate hike next year.

Reiterating ECB President Christine Lagarde’s claims, Lane maintained that rising inflation is driven by temporary effects. ECB policies are not effective against inflation right now, he said, while predicting that it would fade on its own.

ECB not budging

“An abrupt tightening of monetary policy today would not lower the currently high inflation rates but would serve to slow down the economy and reduce employment over the next couple of years and thereby reduce medium-term inflation pressure”, Lane asserted.

“Given our assessment that the medium-term inflation trajectory remains below our 2% target, it would be counter-productive to tighten monetary policy at the current juncture.”

Last week, Lagarde and other ranking ECB officials criticised market expectations, claiming that conditions for an interest rate hike would probably not be met next year.

Lane pointed out that keeping a close eye on wages will be important in judging inflation, but he added that even a significant rise in the coming period may also be transitory.

“A one-off shift in the level of wages as part of the adjustment to a transitory unexpected increase in the price level does not imply a trend shift in the path of underlying inflation”, he cautioned.

Tags: Main-Slider

Latest post

Broken umbrellas get a second life in raincoats

Broken umbrellas get a second life in raincoats

5 days ago
Four Brussels police officers in jail since the beginning of this year

Four Brussels police officers in jail since the beginning of this year

5 days ago

Most Read

  • Losing Balance on Bosnia and Herzegovina

    Losing Balance on Bosnia and Herzegovina

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Finland?

    0 shares
    Share 0 Tweet 0
  • Here Are 10 Highest Paying Jobs In Norway 

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Luxembourg?

    0 shares
    Share 0 Tweet 0
  • These are the 10 highest paying jobs in the Europe in 2022

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Belgium News
  • Brussels
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • About Us
  • EU Institutions
    • Parliament
    • Commission
    • Council
  • Europe
  • World
  • Member States
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • The American Angle
    • Southeast Europe
  • Print Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT