- The ECB increases interest rates by half and puts them at 3.5%. Following the collapse of the US bank Silicon Valley, he doubted what Frankfurt was going to do, but the path of falling inflation has been maintained and the cost of the economic crisis has returned to the people’s expense.
Christine Lagarde, leader of the European Central Bank, announced on Thursday afternoon a 0.5% increase in interest rates, despite the risk of interbank crisis.
Lagard says that they are vigilant and that the economic situation will tell whether interest rates will increase further from now on. Since last July interest rates have risen by 3.5%, directly raising the Euribor rate and making mortgages more expensive for millions of citizens.
There were doubts about what the central bank was going to do, following the earthquake that the collapse of the US bank Silicon Valley caused in the financial sector, but Frankfurt continues with its plan to leave to the citizens the cost of rising energy and food prices.
In order to contribute to the reduction of inflation, the ECB aims to reduce consumer demand by reducing the level of public purchasing power through mortgages and increasing unemployment.
The aim of the measure is to reduce consumer demand in order to contribute to the reduction of inflation by reducing the level of public purchasing power, especially through mortgages and rising unemployment.
On Thursday morning the Swiss bank Credit Suisse asked the Swiss central bank for a liquidity of EUR 50 billion due to the drop in the stock market caused by the Silicon Valley disaster and the "market upset". This has reinforced doubts about the "health" of European banks.
However, ECB Vice-President Luis de Guindos pointed out that Credit Suiss has a "limited" level of pollution and is "Europe's resilient banking industry".
Therefore, the main engine of the European financial economy continues with its own: to make money more expensive and to impoverish the citizens, as it did with the 2008 crisis.