The euro area enlarged for the second month in a row in March to 2.2 %

Photo of author

By [email protected]


Digest opened free editor

Inflation in the euro area fell for the second consecutive month in March to 2.2 per cent, as the determinants of the European Central Bank price are considering whether it would slow down the frequency of interest rates.

Tuesday was 2.3 percent lower than February reading, and in line with the expectations of economists included in Reuters.

The annual inflation number is still higher than European Central BankMedium -term goal of 2 percent. But price scales in the central bank believe that the increase in the main inflation since the fall was temporary.

The initial number in February of 2.4 percent later revised at 0.1 percentage points.

The bank has indicated that it may slow the pace of price discounts due to the inflationary risks posed by the trade war preceded by US President Donald Trump, as well as increased spending on defense and infrastructure.

Last month, the central bank lowered interest rates for the sixth time since last summer to 2.5 percent. But he stressed that “monetary policy has become less restricted,” a formulation indicating a more honest situation.

European Central Bank President Christine Lagarde last month warned that policy makers are facing “high” uncertainty. She added that this made “impossible” to ensure that “the main inflation will always be 2 percent.”

Before the issuance of Tuesday, the financial markets were pricing, with a possibility of approximately 75 percent of another quarter of a point reduction at the next European Central Bank meeting on April 17, according to the levels involved in the bidding markets.

This is a developing story



https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F9981ff06-8d2f-4883-ad84-8671fdde8751.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1

Source link

Leave a Comment