The changing environment for monetary policy in the euro area is now confirmed. After the European Central Bank (ECB) announced in a statement that the pace of debt purchases in January was slowing, and after an upward revision of its inflation forecasts for next year, its president, Christine Lagarde, admitted that while this is “very unlikely” An increase in the interest rate as early as next year cannot be completely ruled out.
The meeting of the ECB’s governing board this Thursday was expected with great expectations, as it was the moment determined by the institution itself to formulate in more detail its plans to gradually remove monetary stimulus in the euro area. Moreover, the meeting took place the day after the Fed’s signal. the possibility of three increases in interest rates in 2022 and at the same time as in London, the Bank of England announced a 0.25 percentage point increase in its benchmark interest rate.
Also under pressure to respond to a rise in inflation to 4.9% in November, the ECB opted for a less drastic change of course, of course, although governors also indicated that they are now more concerned with sustainability. have been seen since the beginning of this year.
In a statement after the meeting, the ECB announced that in the first quarter of next year it will implement its emergency program related to the purchase of pandemic assets, “at a slower pace than in the previous quarter.” Currently, under this program, the ECB buys about 80 billion euros in assets (mainly government debt) per month.
It has already been determined that these most voluminous debt purchases will be completed in March 2022, and this deadline remains, but the slowdown in the growth rate, which is now adopted in the last three months of the program, is already the ECB’s response. higher than expected inflation rate in the euro area…
Then, during a press conference, the President of the ECB announced that the bank’s forecasts for inflation in the euro area had been significantly revised upward. An average inflation rate of 2.6% is expected this year, up from 2.2% in September. In 2022, inflation will not decline as quickly as the central bank previously expected, but will average 3.2% instead of 1.7%. For 2023 and 2024, inflation is now projected at 1.8%, close to the 2% target and above the 1.5% forecast for 2023 made in September.
Finally, Christine Lagarde was far less adamant than she was about keeping the ECB’s benchmark interest rates at current historic lows for an extended period of time. While noting that a rate hike as early as 2022 is “very unlikely,” the truth is that the door has not yet been closed to that scenario.
“In the current circumstances, as I said earlier, it is very unlikely that we will raise interest rates in 2022, it remains. But we have to be very careful about what the data tells us. And we will do that at every monetary policy meeting we have, and even longer when we have new forecasts, ”Lagarde said when asked about what guarantees she could provide to ensure that interest rates rates also did not start to rise in the zone. next year, similar to what seems inevitable in the US.
The high level of uncertainty about the evolution of the economy and inflation was repeatedly mentioned at the press conference, and Christine Lagarde argued that, therefore, the ECB would have to maintain a high level of flexibility in the conduct of monetary policy. “Given the uncertainty, we wanted to have as much flexibility as possible. We are going to reassess the situation and, judging by the available data, we will be correcting in any direction, ”he said. And he explained with regard to inflation: “[A zona euro] it really does go towards the goal, but considering that it is 2%, we have not reached the goal yet. “
In an effort to allay fears of removing stimulus too quickly, the organization led by Christine Lagarde has sought to ensure the central bank’s presence in the eurozone government debt market for quite some time. In compensation for the slowdown in purchases in the coming months, the ECB extended until the end of 2024 the period during which it will reinvest debt securities acquired under the pandemic emergency program, that is, whenever a government bond (Portuguese) is held by the ECB reaches maturity, the central bank buys out the same amount of debt from the same country.
In addition, the ECB announced that in the case of the regular asset purchase program (which was already in place before the pandemic), the monthly purchases of which are currently 20 billion euros, will be increased to 40 billion euros. in the second quarter of 2022, then up to 30 billion in the third quarter and back to 20 billion thereafter.
The ECB says these acquisitions will continue until inflation is guaranteed to hit the 2% target over the medium term and that they will stop “just before the ECB starts raising its key interest rates.”
At a press conference, Christine Lagarde said that “the announced package of measures was supported by the overwhelming majority of the council members,” although “some of these members did not agree with some elements.”
In the US, where inflation hit 6.8% in November, the highest since 1982, there was a sharper reversal in monetary policy this Wednesday. The United States Federal Reserve System (FRS) acted significant changes in your monetary policy, announcing an acceleration in the rate of decline in asset purchases and planning for the first increase in interest rates in the middle of next year.
The Fed has decided that the reduction in monthly purchases will now be $ 30 billion every month (currently € 15 billion), which means that by the end of March the procurement program could be completed.
In addition, members of the Fed’s monetary policy committee predict that there will be three interest rate hikes shortly next year, with three more hikes expected in 2023 and two more in 2024. Federal Reserve Chairman Jerome Powell when asked when the first rise will take place. Interest rate hikes can be expected, said he did not anticipate a “very long wait” between the end of the debt buyout program and the first rate hike in the US.
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.
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.
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.
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.