European Central Bank suspends interest rate hikes

Aihucha News, September 25: European Central Bank Governing Council member Cassax said that the European Central Bank’s 25 basis point interest rate hike in September may cause it to suspend interest rate hikes in October. He said: "We should address inflation once and for all, and raising interest rates will help bring inflation forecasts down so that we can be on a more solid path to 2% in the second half of 2025. I don't want it to drag into 2026 .In my view, we should start cutting rates when we see in the outlook that the inflation forecast starts to fall significantly and persistently below 2%. If we just see inflation fall to 2%, then I don't think we have a reason to start Cut interest rates, because then we will drive inflation up again." He also said: "The recent increase in oil prices, and the communication and actions we have seen among oil suppliers, are not temporary, this is a structural issue, very There may be longer-lasting effects. This increases the risk of inflation. "Excess liquidity" is also a problem and it needs to be eliminated, but it must be gradual so that it does not cause financial instability problems.