amogosolomon
Member
For decades, the strength of recovery from recession is often driven by monetary policymaker's decisions. The European Central Bank has left its interest rate low in order to push its economy towards its policy goals of maximum employment and price stability. From the outlook, the economy has continued to rebound strongly from the downturn and its Gross Domestic Product (GDP) grew with strong speculation for further growth beyond the pre-pandemic level in the near term. It is assertive that the speed of recovery from the covid-19 pandemic hit is massive because it took the Euro area seven years to recover from the 2010 great financial crisis. This was managed solely by the strong and combined fiscal and monetary policy responses through lower rates and tax decline.
Though, growth momentum experienced moderation due to high energy prices and supply chain constrain. This challenge is strengthening weakness in outlook and weighing strongly on manufacturing production, though consumer spending remains solid. There is speculation these constrain to stay elongated for several months but could ease up in 2022. High energy prices are another factor dampening the growth spectrum and limiting currency purchasing power. Inflation stays astronomically high above 4.1%.
Recently on the policy tapering deliberation, president of the European Central Bank Christian laggard stated that "tightening monetary policy now could choke off the euro zone's recovery". This view is declining investor expectations and calls for policy tightening. Though, with the rising level of inflation above the target range, the European Central Bank is under increased pressure to tighten policy and increase rates in order to resolve soaring prices and erode households' purchasing power. However, Laggard in her statement stated that "bank would moderately reduce the pace of the pandemic-era bond-buying program that it has used to ease the impact of the coronavirus on the Eurozone economy"".
kindly hit the link below for the complete publication
https://actmarkets.com/the-european-refinancing-rate-increase-could-strengthen-the-euro-currency/
Though, growth momentum experienced moderation due to high energy prices and supply chain constrain. This challenge is strengthening weakness in outlook and weighing strongly on manufacturing production, though consumer spending remains solid. There is speculation these constrain to stay elongated for several months but could ease up in 2022. High energy prices are another factor dampening the growth spectrum and limiting currency purchasing power. Inflation stays astronomically high above 4.1%.
Recently on the policy tapering deliberation, president of the European Central Bank Christian laggard stated that "tightening monetary policy now could choke off the euro zone's recovery". This view is declining investor expectations and calls for policy tightening. Though, with the rising level of inflation above the target range, the European Central Bank is under increased pressure to tighten policy and increase rates in order to resolve soaring prices and erode households' purchasing power. However, Laggard in her statement stated that "bank would moderately reduce the pace of the pandemic-era bond-buying program that it has used to ease the impact of the coronavirus on the Eurozone economy"".
kindly hit the link below for the complete publication
https://actmarkets.com/the-european-refinancing-rate-increase-could-strengthen-the-euro-currency/
