January 28, 2023

Wire Service Canada

Complete Canadian News World

Lagarde: Prices will go up significantly. Visco: ECB improves connectivity

The ECB has made it clear that interest rates still need to rise significantly at a steady pace to reach sufficiently restrictive levels, and stay there for as long as necessary. European Central Bank President Christine Lagarde said this while speaking at the German Stock Exchange event in Eschborn, Germany. In other words, we will remain on track to ensure a rapid return of inflation to our target.

“I am convinced we need to improve communication” with the ECB, “We are giving very harsh messages and scaring rather than accompanying.” This was stated by the Governor of the Bank of Italy Ignazio Fiesco in relation to the various positions within the Council on possible interest rate increases and monetary tightening, decisions shared by Fiesco and which, however, call for caution and consideration of both inflation risks and negative effects. From increases to homes and businesses. “It is true, there are many voices in the ECB. I speak little, publicly, about monetary policy, variability and the unexpected (pandemic, Ukraine) have increased compared to the Draghi era and there is much more pressure for political interventions by various countries ».

“Our country is able, continuing the course it has already taken of prudent policies and reforms, to manage the consequences of gradual and necessary monetary restrictions,” said the Governor of the Bank of Italy, speaking to Ambrosetti Klepp. According to Visco, “The alarms that are sometimes raised about the effects that further increases in official rates could have on our economy cannot be shared.” Instead, Visco stresses the “significant risks” from inflation for households, businesses, and savings.

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Visco: Interest rate approach and monetary tightening is prudent

The Governor of the Bank of Italy has also returned to calling for a “cautious approach” in normalizing the ECB’s monetary policy. Viscoe believes that “the direction of travel can only be the one that Frankfurt has taken in recent months of increases, but it invites us to balance inflation risks inherent in expectations and wages with those of very dire financial conditions for families and businesses.” In other words, I’m not convinced that he is. Today it is better to risk too much restriction than too little,” stresses the governor.

Yellen: I’m optimistic, inflation is going down

“We still have a very tense job market. We are seeing some signs of inflation in services that require continued attention, but I am generally optimistic that inflation is declining,” US Treasury Secretary Janet Yellen, speaking to reporters on the sidelines of a visit to Zambia, told international media. Yellen: “I think we in the U.S. continue to see a strong labor market and progress in inflation,” and there are “very promising signs.” Yellen also said there’s been good news about U.S. inflation over the past six months, with lower energy and energy prices shipping and commodity prices, while largely easing supply chain issues.The Treasury secretary also stressed that home rental prices should fall in the coming months, which would help.