Governor of the Belgian Central Bank

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Von Krypto News Österreich

Pierre Wunsch – Gouverneur der Belgischen Nationalbank – ist der Meinung, dass die Europäische Zentralbank (EZB) die Zinsen weiter erhöhen sollte, um die lästige Inflation zu bekämpfen. Die Institution hob die Zinsen im März auf 3,5 % an (den höchsten Wert seit dem Finanzcrash im Jahr 2008). Die Federal Reserve verfolgt auch in den Staaten eine ähnliche Strategie, wobei die Zinssätze derzeit in einer Bandbreite von 4,75 % bis 5 % liegen. Während die Anhebung der Benchmark darauf abzielt, die Geldmenge zu begrenzen und damit die galoppierende Inflation zu bekämpfen, erhöht sie auch die Kreditkosten, was einige Anleger davon abhalten …
Pierre Wunsch - Governor of the Belgian National Bank - is of the opinion that the European Central Bank (ECB) should further increase interest rates in order to combat the annoying inflation. The institution increased interest rates to 3.5 % in March (the highest value since the finance crash in 2008). The Federal Reserve also pursues a similar strategy in the states, with interest rates currently in a range of 4.75 % to 5 %. While raising the benchmark aims to limit the money supply and thus combat the galloping inflation, it also increases the loan costs, which some investors prevent from ... (Symbolbild/KNAT)

Pierre Wish-Governor of the Belgian National Bank-is of the opinion that the European Central Bank (ECB) should further increase interest rates to combat the annoying inflation. The institution increased the interest in March to 3.5 % (the highest value since the finance crash in 2008).

The Federal Reserve also pursues a similar strategy in the states, with interest rates currently in a range of 4.75 % to 5 %.

While the increase in the benchmark aims to limit the money supply and thus combat the galloping inflation, it also increases the loan costs, which could prevent some investors from doing so, with certain assets, including cryptocurrencies.

Add up to 50 basis points in May?

Even if the annual inflation in the euro area has dropped in the past few months, so wish believes The ECB should accelerate the degradation of its balance sheet to stimulate:

"We have to do more against the quantitative tightening. We could completely set the reinvestment this year, and even it will take years for the portfolio to be broken down."

pierre wish pierre wish, central banking

The governor of the Belgian central bank, who was one of the first to alerted the first over the worrying inflation rates on the old continent, described a possible interest rate increase by a further 75 basis points. However, he expects the next increase to be a quarter or half a percent:

"I think May will be about 25 or 50 basis points. If there is another positive surprise in core inflation and the (quarterly) credit survey of the ECB does not look too bad, we may have to do 50. If there is a positive surprise in the core inflation, then maybe 25."

Many central bankers have argued that a turn should take place as soon as the inflation rate falls to 2 % (a desired goal that could be advantageous for consumers and promote economic growth). Wish supports this thesis and says that the ECB should stick to its strategy until this goal is reached.

The institute recently raised the interest rates by 0.5 % to 3.5 %, while inflation in the zone has cooled down to 6.9 % (as of March 2023).

The governor of the Bank of France believes that politics is close to its end

Contrary to wishes, the governor of the Banque de France-Francois Villeroy de Galhau- said Interest increases already enforced:

"We have already completed most of our interest rose trip, and the strongest economic effect that lies ahead of us will be the transfer of what is already in the pipeline."

Galhau believes that the central bank should enter a "open" phase in which the interest rates remain unchanged for a long time instead of being raised after each committee meeting:

"For interest rates, as with ballistics, becomes more important than higher."

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