ECB lowers key interest rates: What awaits us in 2025?

  • Erstellt am 2024-12-13 09:45:01

nordanney

2024-12-13 12:20:39
  • #1
That is the definition of price stability, because with the +/-2% there is a - as it is nicely put - medium-term calculable basis for companies and consumers. Too little inflation or deflation is bad, too high is also bad. And for the EU, 2% is considered appropriate. In Switzerland, for example, 0-2% is considered appropriate to ensure healthy economic development. That is why the Swiss are already afraid of possible negative interest rates from the central bank, as these have negative effects on price stability and thus on economic development.
 

MachsSelbst

2024-12-13 12:49:47
  • #2
Since everyone is only fixated on my personal definition of stability, the rest must be correct...
 

nordanney

2024-12-13 15:45:38
  • #3
Well... First of all, there have only been four presidents since 1998. "Always" so much fuss is relative. Regardless, the ECB president makes no decisions on their own. Read up on how the ECB operates. The ECB Council makes decisions – i.e., all countries involved in the euro. An ECB president does not act. He cannot do so alone. See above.
 
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