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Realistbear

Another Top E C B Boss Confirms I R Hikes Are On The Way

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http://www.axcessnews.com/modules/wfsectio...?articleid=9772

AXcess News) London - European Central Bank Governing Council member Nicholas Garganas said Sunday that due to signs of a strengthening economy the ECB will most likely raise interest rates.

In December and March, the ECB raised interest rates 25 basis points to its current level of 2.5 percent. European Central Bank board members have said rates would have to rise to prevent high oil prices and fast credit growth from boosting prices in other sectors of the economy and wages.

Garganas was quoted in the Greek newspaper Ehanos on Sunday as saying, "The most recent data confirms that recovering economic activity is strengthening and it is clear that a gradual increase in interest rates is inevitable."

Financial markets across Europe already priced in an ECB interest rate increase, which is expected to be announced on June 8th. European traders expect the ECB will raise rates once more in August and December.

Garganas said the ECB did not have cap on interest rates, but would instead consider increasing rates based on Europe's pace of economic growth.

"The perception that there is a ceiling to the level of interest rates is not correct. As to where interest rates will finally be, will depend on how fast the medium-term target of price stability will be achieved," he said.

Up up and away as higher IR start to remove the underpinning of HPI. :o

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http://www.axcessnews.com/modules/wfsectio...?articleid=9772

AXcess News) London - European Central Bank Governing Council member Nicholas Garganas said Sunday that due to signs of a strengthening economy the ECB will most likely raise interest rates.

In December and March, the ECB raised interest rates 25 basis points to its current level of 2.5 percent. European Central Bank board members have said rates would have to rise to prevent high oil prices and fast credit growth from boosting prices in other sectors of the economy and wages.

Garganas was quoted in the Greek newspaper Ehanos on Sunday as saying, "The most recent data confirms that recovering economic activity is strengthening and it is clear that a gradual increase in interest rates is inevitable."

Financial markets across Europe already priced in an ECB interest rate increase, which is expected to be announced on June 8th. European traders expect the ECB will raise rates once more in August and December.

Garganas said the ECB did not have cap on interest rates, but would instead consider increasing rates based on Europe's pace of economic growth.

"The perception that there is a ceiling to the level of interest rates is not correct. As to where interest rates will finally be, will depend on how fast the medium-term target of price stability will be achieved," he said.

Up up and away as higher IR start to remove the underpinning of HPI. :o

They havn't started yet. Wait and see. If and when it happens you can start to celebrate otherwise like many on this site who prematurely celebrate falls in HP's, you will look silly.

Edited by nodumsunreader

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They havn't started yet. Wait and see. If and when it happens you can start to celebrate otherwise like many on this site who prematurely celebrate falls in HP's, you will look silly.

They have started already.

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They have started already.

YEs but not to a level that has affected HP confidence in the UK. If the ECB put up rates say to 3%, the UK may then be forced to follow and the rest as they say will become history.

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YEs but not to a level that has affected HP confidence in the UK. If the ECB put up rates say to 3%, the UK may then be forced to follow and the rest as they say will become history.

Well, you have seemingly changed your tune a bit.

I agree with you though, although if you look at the mortgage rates, fixed rates have been ascending for some time. The B of E don't have to do anything and credit is being withdrawn - it is a global thing.

There are some thoughts that the ECB could be mooting a 0.5% hike. :unsure:

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  • 332 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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