The ECB must keep raising interest rates | 22 August 2022

22 August 2022, EUR/USD

The ECB must keep raising interest rates

EURUSD trading plan:

The European Central Bank must keep raising interest rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high all through 2023, Bundesbank President Joachim Nagel told a German. The ECB raised interest rates by an unexpectedly large 50 basis points to zero percent last month and promised more rate hikes to come, arguing that fears over excessive inflation now trump growth concerns. The inflation outlook has deteriorated further, however and price growth in Germany, the euro zone's biggest economy, could even exceed 10% in the coming months. The ECB is forecasting a rapid decline in price growth next year but its projections have been notoriously inaccurate in recent quarters, leading policymakers to question the bank's models, which are not well equipped to factor in dramatic shifts in the economy.

Investment idea: buy 0.9955 and take profit 1.0000.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .