After raising rates by consensus by 50% in July, the European Central Bank (ECB) will meet again on September 8 to make a new decision on interest rates.
The last known macro references in the euro zone increase the pressure on Christina Lagard and the rest of the members of the Eurobank.
Nor does the euro give a truce: the community currency has recently become worth less than the US dollar (with the consequent impact on the economy). In fact, already at the July meeting, the ECB bankers expressed their concern about the depreciation of the euro due to the “greater inflationary pressures” that it will cause, according to the minutes.
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the german Isabella Schnabel has already opened the door to another increase of 0.5%. The central bank did not offer any ‘advance’ last month, quite the opposite: it assured that future increases will be decided at each meeting.
The minutes do not identify the defenders of each position, but the members of the council had been establishing their position more or less publicly in the previous weeks. And while the North, led by the Bundesbank, called for vigorous hikes, the South agreed to raise the price of money, but cautiously.
The hawks ended up prevailing and voting for the proposal of the chief economist and member of the Governing Council, Philip Laneconsidered one of the defenders of a more lax monetary policy.
The Irishman proposed the 0.5% rise, considering that it was the most appropriate step to go towards a “normalization” of monetary policy, also using the implementation of the new instrument to avoid the appearance of debt crises in the countries from the periphery, which at the beginning of the summer saw their bond yields increase.
