Windfall profits for banks are the consequence of ECB rate hikes.
There is evidence that the decision by central banks to raise interest rates is already slowing down investments in the renewable energy sector, thereby undermining the green transition. This is in direct contradiction to the latest climate stress test of the European Central Bank (ECB), which calls for a faster switch to a greener economy. It’s time for the ECB to rethink its approach, as opposed to raising interest rates without regard to the outcomes.
Our carefully curated list of books, explored by the Positive Money Europe team, for the summer of 2023
On Thursday, the European Central Bank (ECB) will add 25 basis points to the largest rate hike in the European Monetary Union’s lifetime.
The European Central Bank (ECB) raised its interest rates today by 0.25 percentage points, taking further steps to tighten monetary policy in an already unprecedented cycle. It is puzzling.
The European Central Bank (ECB) is expected to further raise its rate of interest. Rate hikes take a long period of time to have an impact on the rest of the economy. The Bank Lending Survey shows that credit conditions and loan demand are tightening at rates not seen since previous major crises. A credit crunch in the making should be signaling to ECB officials that it is time to wait and see, as further increasing the interest rate without knowledge of the consequences of previous increases can prove to be a major policy mistake.