Such data have proven critical in driving momentum toward large rate hikes in previous months, and this result is likely to embolden calls for another large move at the next ECB decision on Oct. 27. Investors this week began pricing in a second straight 75 basis-point increase.
“The next step still has to be big because we are still far away from rates that are consistent with 2% inflation,” ECB Governing Council member Martins Kazaks, said Wednesday in an interview in Vilnius, Lithuania, where price growth was 22.5%. “I would side with 75 basis points.”
No doubt Christine Lagarde, head of the ECB, will raise rates 75bps because, after all, that’s what her Fed counterpart would do (and has done). What worked for the Fed will work for the ECB, right?
Slight problem: so far, the 75bps hikes have not worked for the Fed, either.
"so far, the 75bps hikes have not worked for the Fed, either."
Not surprising; it's too little, too late. They should have slowly increased rates 10 years ago. By 2012, the GFC was already a few years in the rear view mirror and rates should have come back to reasonable, historical norms; a couple of points above the actual rate of inflation. Instead, the Fed (and other central banks) kept them much too low this whole time, thereby enabling the irresponsible deficit spending by governments as well as blowing the biggest asset bubbles the world has ever known.
Of course, all this is planned destruction of the world's economies in furtherance of the Great Reset. All bankers are in on the destruction, especially central bankers. Anyone who does not see this is not paying attention.
A pivot is coming sooner than most of us realize because the US Fed and the ECB are shocking the world economy more than it can stand. Something has to give... and it will.
Peter -- wondering, not familiar w finances and markets like you, what is the significance of this news, in re to Fed policy of fighting inflation (or the Luongo-led view of Fed fighting against the WEF/Davos crowd by shrinking the money supply so their eurodollar/shadow banking system crumbles)
JUST IN - U.S. Fed reverse repo facility use spikes to $2.426 trillion — a new record high.
"so far, the 75bps hikes have not worked for the Fed, either."
Not surprising; it's too little, too late. They should have slowly increased rates 10 years ago. By 2012, the GFC was already a few years in the rear view mirror and rates should have come back to reasonable, historical norms; a couple of points above the actual rate of inflation. Instead, the Fed (and other central banks) kept them much too low this whole time, thereby enabling the irresponsible deficit spending by governments as well as blowing the biggest asset bubbles the world has ever known.
Of course, all this is planned destruction of the world's economies in furtherance of the Great Reset. All bankers are in on the destruction, especially central bankers. Anyone who does not see this is not paying attention.
I recommend watching this: https://www.youtube.com/watch?v=ERDqyxTHZiU
and discussing.
A pivot is coming sooner than most of us realize because the US Fed and the ECB are shocking the world economy more than it can stand. Something has to give... and it will.
Peter -- wondering, not familiar w finances and markets like you, what is the significance of this news, in re to Fed policy of fighting inflation (or the Luongo-led view of Fed fighting against the WEF/Davos crowd by shrinking the money supply so their eurodollar/shadow banking system crumbles)
JUST IN - U.S. Fed reverse repo facility use spikes to $2.426 trillion — a new record high.
@disclosetv