ECB cuts through bank turmoil to keep rate hike pledge

"I think that the banking sector is currently in a much, much stronger position than where it was back in 2008," ECB President Christine Lagarde told a news conference, citing improved capital and liquidity positions since the financial crisis of 15 years ago.

"We know that if our baseline were to persist when the uncertainty reduces, then we have a lot more ground to cover," Lagarde said, while noting it was impossible to determine the future path of rates amid "completely elevated" uncertainty stemming from the market ructions. The euro and bond yields edged up after the move, with bank shares hitting two-month lows before partially recovering. After days of turmoil in markets, financial investors had seen a 50% chance of a smaller, 25 basis point move by the ECB and dialled down expectations for future moves.Signage is seen outside the European Central Bank building, in Frankfurt, Germany, July 21, 2022.

The key worry for the ECB is that monetary policy works via the banking system, and a full blown financial crisis would make its policy ineffective.

I'll end the economic crisis in 15 days, and then you won't see an interest rate hike for 15 years; Otherwise, financial systems all over the world will collapse very soon.

Madness!!! And what have the previous increases don’t to stop Inflation NOTHING, this inflation is not being striven by consumers, they are attacking the wrong end of the Pineapple 🙄🙄🙄

Reducing inflation with interest is ignorance. You're going to sink

Buy bitcoin

Caused by American and EU and Britain's sanctions on Russia. Shooting self in the foot!!!

Shhteeeeeett. 5 points with all other things held constant would be 50k on a million. Stock up on the cheapest rice you can find. It's all rice. And stock up on green veggies when they are on sale for .50. If you need money or tylenol or whatever. Hold an auction. $5 can

This burocrates are killing common people.

Raising Rates whilst simultaneously Bailing out the Banks with 'Free' Money. Just rolling the ever bulging Bubble further down the road.

AniceLajnef

Out of their minds. How does this help people? Inflation in food and fuel won't be effected by this. Trying to put EU into a recession is idiotic.

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