For context the European Central Bank just raised its interests rates from 0% to 0.5% in late July. I get that a stronger USD and weaker EUR is good for business in EU but I don’t get why the BCE didn’t raised its rates earlier as the Fed did ? We don’t have as much inflation here as in the US but I feel like the Central Bank could have anticipated it and give us a lighter raise of .25% every few months instead of a .5% that late.
Can you shed some light for me on this matter. The US is now way more competitive at almost 2% interests rates so it’ll attract Capital and the EU will lose investments right ?
Submitted July 25, 2022 at 09:40AM by Mikaakira https://ift.tt/aRDB9tH
