Filenews 21 July 2022
The European Central Bank announced its first rate hike in 11 years by opting for the most aggressive 50 basis point path, under growing concerns about the impact of rising prices on households, companies and governments.
The long-awaited rate hike by the ECB now brings it closer to more than 80 central banks that have already raised theirs later this year, although it falls far short of the Federal Reserve, which began the hikes in March and is preparing for another large increase of 75 basis points, or perhaps 100.
In any case, however, attention is more focused on the "against fragmentation" tool that will hold back the spreads of eurozone government bonds, the Transmission Protection Instrument (TPI) approved by the ECB's Governing Council to "preserve the smooth transmission of its monetary policy stance across the euro area".
Source: Capital.gr
