Connect with us


The ECB raises interest rates by 75 basis points. What is this increase? – Markets



The ECB raises interest rates by 75 basis points.  What is this increase?  - Markets
The European Central Bank (ECB) has decided to raise base interest rates in the euro area for the second time in a row. The Monetary Authority, led by Christine Lagarde, announced Historic 75 basis point gain at three rates, in line with market expectations. He also said that he would raise interest rates in the eurozone “several times” more until the rise in prices slowed down.

On the other hand, in the presented new projections This Thursday, after a meeting of the Board of Governors, the ECB said it expects higher inflation and slower economic growth in the euro area from next year. Monetary authorities now expect eurozone inflation to reach 8.1% in 2022, compared to the 6.8% estimate set in June. For 2023, the forecast rises to 5.5% (from 3.5%), and for 2024 to 2.3% (two tenths more).

With regard to the debt purchase program, the ECB guarantees that it will continue to fully reinvest amounts maturing under the regular program.
What did Lagarde say?

“Inflation remains too high and is likely to remain above our target for an extended period of time,” President Christine Lagarde warned at a press conference that followed the meeting. “Although supply constraints are easing, they continue to gradually affect consumer prices and put pressure on inflation, as does the recovery in demand in the service sector.”

“Given our current assessment, we expect to raise interest rates further at several future meetings to dampen demand and guard against the risk of rising high inflation expectations,” he added.

See also  This month, installments on the house can reach up to 234 euros. Simulate how much you will pay

How did the markets react?

In response to this decision, the main European markets began to decline and reversed the growth achieved in the early morning. However, on the heels of the banking sector – the main beneficiary of the ECB decision – managed to restoreexcept for the German index, which ended at the waterline, with a slight devaluation.

The euro made the opposite move. It rose above parity with the dollar, falling later, after the speech of the chairman of the US Federal Reserve, Jerome Powell, who also assured that the Fed maintain monetary tightening. Interest in eurozone sovereign debt has worsened.

What does this decision mean?

The ECB does not directly intervene in inflation, however, through its monetary policy instruments (especially interest rates), it tries to influence household and business spending and, consequently, the prices of goods and services. It may take several quarters before the decision is fully reflected in the economy.

The most immediate reaction to changes in these interest rates will be the Euribor (which is determined by the average at which the 57 eurozone banks lend money to each other in the interbank market), the rate at which most Portuguese home loans are indexed. .

With this historic growth of the ECB, Euribor is also expected to rise. This Thursday, Euribor rates fell to six months to 1.354%, to 12 months to 1.903% and rose to three months to 0.836% compared to Wednesday, hitting a new high.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


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



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.

Continue Reading


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



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…

Continue Reading


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



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.

See also  Europe is retreating under the pressure of Russian gas. Oil and gold are falling. Euro Falls Slightly - Minute Markets

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.

Continue Reading