HomeFinancial MarketsEuropean Central Bank Calls for More Hikes as German Recession Likely

European Central Bank Calls for More Hikes as German Recession Likely

Bundesbank Chief Joachim Nagel recommended that the European Central Bank continue increasing its interest rates so as to repel the recession that Germany seems likely to face otherwise. Nagel stressed the importance of acting quickly in order to tackle the high inflation, explaining, “the past few months have shown that we have to decide on monetary policy from meeting to meeting.”

Nagel added that in order to combat the inflation issue, it will be key to keep medium-term inflation expectations “stable at 2%”. The European Central Bank previously raised rates by 50 points, before indicating that more hikes would likely follow. Currently, inflation appears to be hovering below 9%; four times the bank’s target. The value of the euro also appears to be wavering as of late, leading many forecasters to adjust their expectations for the impending hikes.

Germany’s gas supply also appears to be at risk as Russian imports, which are still heavily relied upon, remain low. Currently, the Rhine River, which is a vital waterway for transporting fuel and other industrial goods to Germany, is experiencing low water levels, making it difficult to navigate. With such issues along with the ongoing energy crisis in mind, Nagel believes that Germany will likely face a recession next winter.

Delta CEO Ed Bastian Predicts Further Rise for the Company’s Stock

The majority of the airlines around the United States have been recently going through a period of struggles. One notable exception is Delta Air...

Shares of Palantir Technologies Plunge After a Downgrade From Monness, Crespi, and Hardt

Data-analytics software company Palantir Technologies saw its stock enjoy an admirable run since 2023 amid the ongoing artificial intelligence frenzy. However, it appears that...

Spotify Launches a New Subscription Plan for Users in the U.S.

The music streaming platform Spotify announced it would roll out a new subscription plan for its users in the United States. The news comes...