![](https://theceopublication.com/wp-content/uploads/2024/09/Foster-USA-Wins-Winston-Salem-Council-Approval-for-Incentives.png)
The European Central Bank (ECB) held its monthly policy meeting on Thursday, September 8, 2023, to discuss inflation and interest rates in the eurozone. The ECB raised interest rates by 75 basis points, its largest increase on record, to combat rising inflation. However, given the uncertain economic outlook, the ECB also hinted that it may pause its rate hikes in the coming months.
Inflation in the eurozone reached a record high of 8.9% in July 2023, driven by soaring energy prices. The ECB is targeting inflation of 2%, and it has pledged to do whatever it takes to bring inflation back to its target level.
The ECB’s rate hike is expected to have a negative impact on economic growth in the eurozone. However, the ECB believes that the risks of high inflation outweigh the risks of a slowdown in economic growth.
The ECB’s decision to hint at a possible pause in rate hikes surprised some analysts. However, it is understandable given the uncertain economic outlook. The war in Ukraine is still ongoing, and there is a risk of a recession in the eurozone.
The ECB’s next policy meeting is scheduled for October 27, 2023. At that meeting, the ECB will provide an update on its economic outlook and monetary policy stance.
The ECB raised interest rates by 75 basis points at its September meeting, but it also hinted that it may pause its rate hikes in the coming months. The ECB is facing a difficult balancing act as it tries to combat inflation while supporting economic growth. The ECB’s next policy meeting is scheduled for October 27, 2023.
© THE CEO PUBLICATION 2021 | All rights reserved. Terms and condition | Privacy and Policy