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ECB lifts rates by unprecedented 75 bps to fight inflation
- nathanaldensr 4y ago"to fight inflation?" Really? Meanwhile, they revised inflation expectations up. If you want to fight inflation instead of saying you're fighting inflation, try a several point raise.
- hulitu 4y agoIt's a new trend in newspeak. Just like declaring forests burnable because they "regenerate". Or declaring oil = gas = energy. Everything can be true or false depending on the moment.
- somewhereoutth 4y agoProbably the 'natural' interest rate (where resource allocation accurately prices risk) is around 5%, based on history. To successfully fight inflation, likely rates will need to be somewhat higher than that for a period.
- moistly 4y agoI have read that Canada’s house prices have increased by an average 7% per year for quite a few decades. A 5% mortgage would reduce profits on sale to 2%, I think, which is around the target inflation rate.
- Havoc 4y agoThank goodness the negative rates are over
- hulitu 4y agoAre you sure ? I would not underestimate those people.
- unmole 4y agoMeanwhile the PM announced a plan to spend 150 billion pounds to subsidise energy.