Drake, growth, water prices … Interest rates rise expected next year (overall)



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The governor of the European Central Bank (ECB), the governor of the European Central Bank (ECB) Mario De Ragh, said at a press conference after the European Central Bank (ECB) Trust in the economic growth and inflation.

The financial market is well aware of the ECB interest rate outlook for next year, and this is reflected in the price.

However, uncertainties related to the business environment remain unclear.

The ECB kept its leading interest rate (refinancing rate) at zero (0%) at the monetary policy meeting. Zero interest rates have been maintained since March 2016. The deposit interest rate has also been frozen at minus 0.4%.

The ECB says it's expecting to end its QE at the end of the month after the meeting, but said the current rate hike should remain "at least summer" next".

Draghi said at a press conference that economic growth is strong and broad. "

Draghi said the slowdown in growth is temporary and results in uncertainties, supply factors, weak trade," he said.

"The uncertainty badociated with global factors and protectionism is significant," Draghi said, adding that "we must continue to monitor the risks of market volatility." "

" It is possible that overall inflation is slightly above the current level for the remainder of this year, "said Draghi.

"While core inflation is generally calm, And the uncertainty surrounding inflation is down." Core inflation is expected to increase at the end of the year. year, then gradually increase in the medium term. "

And the United States." It is premature to evaluate trade negotiations between the United States and the EU, "he said, "But the result of trade negotiations between the United States and the European Union the day before is a good signal."

"He said.

"The results of the survey and the expectations of the short-term financing market are in line with the expectations of the ECB's committee," he said.

Draghi said: "No further badysis of protectionism has occurred", but "trade wars will create a completely different environment".

Draghi explained that the medium-term outlook and inflation outlook have not changed. He added that slowing growth in the eurozone is more evident than it has ever been since it has receded unusually strong year-over-year growth. latest.

Draghi said: "The encouraging signal about inflation appears here and there, but it is too early to declare a victory."

Draghi said the slowdown in eurozone growth should continue in the second quarter. Draghi said that the overall increase in wages is done through wage negotiations and that the effects of training are observed.

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