(Finance) – “In the baseline scenario, a new rise in the interest rates” by the European Central Bank. This was stated by the chief economist of the institution, Philip Lane, which, however, did not go too far on how much they will be raised. “I don’t have a fixed amount – he specified to Bloomberg TV -, I would say that we have various data to examine”, including that of inflation which will be published the day before Board of directors.
The Governing Council in May “there are two weeks left. Until the last one meeting we said our decisions would be very data-driven. What can be said, with the passing of time, is that many of the tensions on the banks have subsided – explained Lane – and that to a large extent the data that has been received confirms that in the first quarter we see a reversal of the supply shock that dominated the European economy last year: an easing of bottlenecks in the chains of supplies and a sharp drop in prices gas”.
“So I would say that based on the data so far, the baseline scenario is that we should raise rates in May, but on how much we will do it, in terms of proportions, I won’t give any fixed number – he continued -. I would say that we have several data before of the meeting, the day before I believe that of the inflation of April, and also there Bank Lending Surveywhere we should see a further tightening of financing conditions and what banks hear from their customers”. “All of this – he concluded – will be part of the decision in two weeks’ time”.