EU Central Bank Scrambles To Reduce Inflation With Rate Hikes.
EU Central Bank plans to announce a rate hike in the latest attempts to get inflation under control. (Washington Post)
“Thursday’s announcement would amount to another significant effort to address Europe’s inflation challenge, which may not do much to help. Much of the problem is linked to rising energy prices, largely triggered by Russian President Vladimir Putin’s decision to limit natural gas supplies to European customers.
Inflation in the euro area rose in September to 9.9 percent, up from 9.1 percent in August, well above the ECB’s 2 percent annual price stability target. The ECB’s deposit rate was negative as recently as July, before the bank implemented its first rate hike in 11 years. Last month, in its largest-ever hike, it raised rates by three-quarters of a percentage point.”
Inflation continues to roil developed economies across the Globe as a new post pandemic norm seems to be settling in. Once relegated to developing nations, the inflation problems is forcing central banks all of over the World to re-thing monetary policies that have been in place for nearly half a century. As supply chains remain strained and Russia continues its war in Ukraine, the scarcity of resources problem will not be resolved in the near future.
