Costa accuses the ECB of not understanding “the nature of the inflationary cycle”

The European Central Bank is sovereign in determining monetary policy. I think the ECB did not have an adequate understanding of the particular nature of the inflationary cycle that we are witnessing, nor does it take into account the sectors that have fueled this inflationary tension.Costa replied.

Today it is more or less evident Above all, the increase in extraordinary profits did more to keep inflation at bay than to increase wagescontinued the CEO.

“Not understanding the specific nature of this hypertrophic cycle greatly limits the ability to confront it because if we don’t get the correct diagnosis, treatment soon corrects it.”he insisted.in Great interviewThe Governor of the Bank of Portugal, Mario Centeno, has indicated that Euribor rates will continue to rise through September, at 12 months, and November, at three and six months.

“We hope, as the Governor of the Bank of Portugal announced yesterday, that from September we can begin to resume a course of monetary policy that is more favorable to what is essential, which is to protect the living conditions of households, the ability of businesses to invest, the continued growth of the economy and the creation of wage-generating jobs Better,” the prime minister added.

Mario Centeno’s interview with RTP was broadcast on the same day, at the European Central Bank Forum, in Sintra, European, English and Japanese central bank governors and the North American Fed chair He warned of persistent inflation, which indicates a continued rise in interest rates.

TV news June 28, 2023

In turn, the President of the Republic considered that central banks should be “extremely careful what they say publicly” regarding interest rates, because it is a “very sensitive issue for people’s daily lives.”

“Rising interest rates means doubling your mortgage payments by two or three, in record time, or fighting for the house and contracting out new depreciation credit to offset the remaining home equity payments.”Marcelo Rebelo de Souza stressed.