Hong Quang (VTV reporter residing in Europe)–Friday, June 10, 2022 09:50 GMT+7
A woman holding Euro banknotes. (Artwork – Photo: Reuters)
The European Central Bank (ECB) decided to stop buying government bonds as well as corporate bonds from July 1.
The President of the European Central Bank said that the medium-term outlook for inflation has changed and now is the right time to return to policy. currency normal.
In the past 10 years, inflation has been so low, the European Central Bank still has to find a way to boost inflation to 2%. However, now, with inflation soaring to a record 8.1%, the European Central Bank is forced to change direction, first to end the monetary easing policy, and then to raise interest rates. basic.
From the past 11 years, the basic interest rate has only been adjusted down and in the past 6 years, the basic interest rate has been at a level that cannot be reduced any more. The euro base rate is expected to be raised by 0.25 percentage points in the next few weeks.
The roadmap for the next interest rate hike will be announced at the meeting of the Board of Directors of the European Central Bank in Frankfurt at the end of July.
at Blogtuan.info – Source: vtv.vn – Read the original article here