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ECB Economists See Interest Rate Jump Below Market Expectations – Monetary Policy

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ECB Economists See Interest Rate Jump Below Market Expectations - Monetary Policy

Technical experts at the European Central Bank (ECB) are pointing to the need to raise the rate applied to deposits to 2.25% or even below this level if at the same time the monetary authorities reduce the balance sheet, according to sources close to the process, cited by Reuters.

The value is well below the market rate, which was aimed at the possibility of reaching the key interest rate of 3%.

The model was presented by economists during a meeting of the monetary authorities, which took place last week in Cyprus, according to information provided by the British agency.

In less than two months, the Eurozone deposit rate has moved from negative territory (-0.5%) to 0.75% at a pace never seen before. In early September, the Monetary Authority, led by Christine Lagarde, announced a historic 75 basis point hike in three key interest rates, in line with market expectations.

At present, the interest rate on major refinancing operations is set at 1.25%, on margin loans – 1.5%, on deposits – 0.75%.

At the last meeting, the Governing Board also guaranteed that “it will continue to fully reinvest amounts that reach maturity under the normal asset purchase program “over an extended period of time” and “for as long as is necessary to maintain conditions with sufficient liquidity”. Monetary authorities will meet again on 27 October.

The study, cited by Reuters, indicates that interest rates only need to rise once to the restrictive level to push inflation towards the 2% target.

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After reading the study and listening to its presentation, sources contacted by the British agency said that the members of the Governing Council responsible for voting on the central bank’s monetary policy decided not to disclose the document to the media, nor to take it in the form of a political focus.

Among the main reasons for this decision is the fact that this type of model has “performed poorly in recent years”, as well as the fact that, in their opinion, ECB economists “underestimate the risk of inflation”, writes Reuters.

In addition, some members of the Board of Governors also argued that their decisions should not be limited to one model, but should take into account a complex set of indicators and factors.

“The tax on deposits could be 3%,” admitted the Belgian governor.

Pierre Wunsch, Governor of the National Bank of Belgium, goes even further and believes that the interest rate on deposits may even need to reach 3% to have an impact on fighting inflation.

Despite the fact that the ECB has set this key rate at 0.75%, the governor recalled that in real terms, that is, adjusted for inflation, it still remains negative. “Given the current scenario, which is more or less a technical recession, we will have to enter positive territory,” said Pierre Wunsch. So, according to the governor, the rate on deposits “may have” more than 2% by the end of the year.

Still, “I wouldn’t be surprised if we have to go above 3% at some point,” Wunsch added during the annual meeting of the IMF and the World Bank in Washington, DC.

See also  The Fed raises interest rates by 75 basis points. It will only get weaker from 2024 - Monetary Policy

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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