HomeFinancial MarketsECB Expected to Keep Boosting Interest Rates, Belgian Central Bank Chief Claims

ECB Expected to Keep Boosting Interest Rates, Belgian Central Bank Chief Claims

The European Central Bank is expected to continue raising its interest rates as it looks to continue suppressing inflation, Belgian central bank chief Pierre Wunsch believes. He added that a repeat of the 2008 financial crisis is unlikely as European banks have been subjected to stricter monetary policies than their U.S. counterparts.

Wunsch’s comments come after the European Central Bank raised interest rates by 50 basis points on Thursday, thereby keeping rates above their 2% target through 2025. The Belgian central bank chief stated that European interest rates still have a long way to go before the European Central Bank’s baseline interest forecast is met.

As market uncertainty persists, a large majority of European policymakers have expressed support for the continued raise of interest rates. “Firstly, inflation has remained too high, for too long. Secondly, we don’t see a structural problem with European banks,” Wunsch explained. He went on to explain that there is no new information to suggest that European banks are vulnerable in the current economic climate.

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