The governor of the Banco de España, Hernández Cos, has stated what was known with statements made this Thursday in Barakaldo: The European Central Bank (ECB) will raise interest rates much more, despite the fact that many experts, actors and citizens say that it will not stop inflation, which will lead to an increase in energy costs at the expense of families and, therefore, a disaster, especially for those who are paying a mortgage, which passes billions of euros into the hands of the banks.

According to Hernández de Cosen, the Bank of Spain expects the ECB to increase interest rates by between 2.25% and 2.5% by the end of the year, although it has recognised that they use "models conditioned by current information", according to the news agency Europa Press. The Spanish Confederation of Directors and Executives (CEDE) has made its statements in an event organized in BEC with the presence of the Spanish King Felipe VI.

This statement coincides with others recently made by Christine Lagarde. The President of the ECB approved in the European Parliament’s Committee on Economic and Monetary Affairs and Industrial Policy that the rise in interest rates has no ceiling and does not know how far they are going to rise: "We're going to go step by step and from meeting to meeting," he said, not to paralyze the economy until we find a "neutral point." The next meeting of the Governing Council of the ECB will take place on 27 October.

Hernández de Cos is "tranquilizer" of not raising wages

Inflation is becoming a major headache for the European commissioners. The supply of services began to increase more than a year ago, when the war in Ukraine still did not exist, mainly due to increased energy prices and supply disruptions in world trade.

Prices have risen in Europe at around 9%, according to recent data from the INE Statistics Institute in the Spanish State, the annual CPI has fallen to 9% in September, while in the French State it is at around 6%, which in practice has resulted in a reduction in workers’ salaries and an impoverishment of citizens.

In this sense, Hernández de Cos has shown satisfaction with the fact that the demand – which mainly refers to the rise in wages – has not increased so much, as he considers that wage increases are "a risk focus" to enter an inflationary spiral, remembering that while inflation stands at 9%, the wage increase is around 2.5%, which is a "relaxing element".