Eurozone interest rates, set by the European Central Bank (ECB), rose yesterday for the first time in more than 11 years, ending the era of zero rates that had lasted since 2016.
At the same time, fearing a more aggressive reaction from speculators in public debt, the ECB advanced with the famous protective shield for the most vulnerable countries (IPT or Instrument for the Protection of Monetary Transmission).
He said that it will only be used in a second-line logic and only after a fine-tooth comb of the quality of the countries’ policies. Many Germans are already turning up their noses.
At the press conference in Frankfurt, Christine Lagarde surprised when she revealed that the main refinancing rate of the ECB will finally take off from the current 0% to 0.5%, when just a month ago she said that the rise would be to 0.25%.
The tightening will thus be twice what was expected and is justified, said the high responsible, to try to catch inflation and bring it back to the desired 2% that is the ECB’s target for the medium term.
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