(Finance) – “Current inflation is very high, which is particularly difficult for low-income people. In June we will decide the next steps towards the normalization of our line “. This was stated by the member of the Executive Committee of the European Central Bank, Frank Elderson, during a dialogue via Twitter. “We listen to people’s concerns and take them very seriously.”How much to the exact timing of the rate hikes “will depend on the data that arrives. We will discuss this in detail at our next board of directors, on June 9”. So he answered a question about a possible rate hike in July. Rising energy prices are the main driver behind the current high inflation. “Although rate hikes would not solve them, we must ensure that high inflation does not settle into public expectations “he adds.
For Elderson “the weakening of the data occurring does not suggest as of today that we are entering a recession and we expect that inflation declines. It will all depend on how the war evolves and the impact of sanctions, we will decide the next steps for the normalization of our policies in June “.
“It is true that the war is weighing heavily on economic activity, but it also pushes up inflation, mainly through higher energy prices. Our mandate – he adds, answering a question – is price stability, so we will ensure that we bring inflation back to our target of 2% over the medium term “he concludes.