Updated
Updated · Bloomberg · Jun 11
IMF Says ECB Needs More Rate Hikes After 25-Basis-Point Move
Updated
Updated · Bloomberg · Jun 11

IMF Says ECB Needs More Rate Hikes After 25-Basis-Point Move

3 articles · Updated · Bloomberg · Jun 11

Summary

  • Hours after the ECB raised rates by a quarter point, the IMF said borrowing costs will likely need to rise further in the euro area.
  • The fund said additional tightening is needed to contain the inflation impact of the shock hitting the currency bloc.
  • The warning came in the IMF’s annual assessment of common euro-area policies, adding outside pressure for Frankfurt to keep tightening beyond Thursday’s move.

Insights

With Europe's economy weakening, is the ECB risking a recession to fight inflation it can't control?
Can interest rate hikes solve an inflation crisis fueled by a Middle East war and energy shocks?