Will the ECB take its key rate past 4%?
French and Spanish governors say policy is working, but Nagel warns pace is too slow
After the European Central Bank’s latest monetary policy decision on September 14, most observers posed a question: has it finished increasing interest rates?
That day the governing council voted to tighten financing for the tenth consecutive time, taking the deposit facility rate to 4%. Overall, the ECB has increased rates by 450 basis points since July 2022.
What prompted the question was a new sentence added to the policy statement that said “rates have reached levels that, maintained for
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