State of the Union: The Iran War has caused prices to rise amid an energy supply crunch. The post European Central Bank Raises Interest Rates appeared first on The American Conservative .
The European Central Bank voted on Thursday to raise a key interest rate amid concerns about higher inflation. The ECB raised its deposit rate 25 basis points to 2.50 percent. The Iran War has created an energy supply crunch, sending prices upwards. The ECB’s decision came the same day the price of Brent crude topped $105 a barrel. ECB President Christine Lagarde said the rate hike was unanimous and a “no brainer” given the need to stabilize prices. “With today’s decision, the Governing Council remains well positioned to navigate the uncertainty caused by the conflict,” read a statement released by the ECB. During a press conference, Lagarde rejected French politician Jean-Luc Mélenchon’s proposal to cancel…Open
State of the Union: The energy price shock produced by the Iran War is squeezing the European economy. The post Inflation Surges in the Eurozone appeared first on The American Conservative .
Inflation in the Eurozone increased to 3.3 percent in August, driven by a surge in energy prices due to the ongoing war in Iran, according to the latest report from the European Statistical Office. The inflation rate of the harmonized indices of consumer prices (the equivalent of the American consumer price index, or CPI) increased from 2.9 percent in July, with higher energy prices accounting for much of the increase. Energy costs are up 14.3 percent from the previous year, a result of the supply shock created by the ongoing closure of the Strait of Hormuz to oil and gas exports from the Persian Gulf. Excluding energy, annualized inflation in August hit a more modest 2.2 percent. With no end to the Iran War in sight, the uptick in…Open
Perchance AI By Thomas Kolbe France, a cornerstone of the euro system, confirmed once again that it remains a leading candidate and potential trigger for a future euro financial crisis.
State of the Union: The Iran War continues to drive higher energy prices and broader inflation. The post ECB Holds Rates Steady appeared first on The American Conservative .
The European Central Bank (ECB) left interest rates unchanged at its meeting Thursday, citing the effects of the Iran War on energy markets. The bank kept its benchmark deposit rate at 2.25 percent, with its main refinancing and marginal lending rates remaining at 2.40 percent and 2.65 percent, respectively. The ECB assessed that energy prices remain volatile and consistently elevated when compared to pre-war conditions, noting in a statement that “uncertainty remains high and the full inflationary impact of the energy shock has yet to play out.” The bank also said it was “closely monitoring the intensity and duration of the shock, as well as its indirect and second-round effects.” Inflation in the Eurozone dipped slightly in…Open
Data: FactSet; Chart: Matt Phillips President Trump's threat to "cut off all trade " with Spain was immediately a market event — at least in Europe. Why it matters: Well into Trump's second term, foreign investors aren't totally dismissing the president's trade threats, even if the legal authority, the path to implementing them and the ultimate outcome remain unclear. - The U.S. Supreme Court narrowed one of Trump's most aggressive trade authorities. But trade tensions are still flaring up in ways that financial markets are adjusting to. - Top economic officials suggest they are willing to explore how to translate the president's trade demands into policy. Driving the news: "We don't want to do any trade business with Spain anymore,"…
State of the Union: The ECB becomes the first major central bank to raise rates to combat inflation. The post European Central Bank Raises Interest Rates by 0.25 Percent appeared first on The American Conservative .
The European Central Bank (ECB) raised interest rates for the first time in nearly three years on Thursday, from 2 to 2.25 percent, making it the first major central bank to raise rates amidst climbing inflation. Higher energy costs in the eurozone helped to push inflation over 3 percent, forcing a response from the central bank. Economists and investors expect the U.S. Federal Reserve and Bank of England to join the ECB by the end of the year in raising interest rates as inflation continues an upwards climb. Iran’s closing of the Strait of Hormuz has driven up energy prices significantly and weighed significantly in inflationary pressures across the globe. The eurozone’s economy shrank by 0.2 percent in the first quarter of…Open
Most transactions in European countries remain cashless. But the adoption rate for them has leveled out, and now the government is creating incentives to stabilize the current level of cash usage rather than letting it fall further.