ECB increases rates to highest level since 2001

 ECB repeated its warning that it expects inflation “to remain too high for too long” as it will not return to its 2 per cent target for another two years.

The ECB started raising rates several months after the Fed and, at 6.1 per cent, inflation is now higher in the eurozone than in the US.

The ECB raised its forecast for core inflation to 5.1 per cent this year, 3 per cent next year and 2.3 per cent in 2025

FT 15 June 2023

https://www.ft.com/content/25c99f1d-c730-4ab8-a7ff-7aca6bcd35b9

ECB meddelade också att återinvesteringarna av förfallande räntepapper inom ramen för det gamla köpprogrammet APP upphör vid halvårsskiftet. Det innebär att balansräkningen kommer att krympa snabbare.

Viktor Munkhammar DI 15 juni 2023

https://www.di.se/analys/hokaktig-lagarde-okar-risk-for-fler-svenska-hojningar/

ECB om APP och PEPP

https://englundmacro.blogspot.com/2022/09/raise-three-key-ecb-interest-rates-by.html

ECB is having a harder time reversing years of massive asset purchases.

Otmar Issing Project Syndicate 7 June 2023

https://englundmacro.blogspot.com/2023/06/ecb-is-having-harder-time-reversing.html