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9/27, 3:33 PM (Source: TeleTrader)
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ECB: Data to determine size of future rate hikes

European Central Bank (ECB) Vice President Luis de Guindos underlined on Tuesday that forthcoming statistics on the region's economy will define the number and amount of future rate rises, adding that the central bank will continue to increase interest rates over the next months.

Speaking before the International Monetary Policy Forum in London, the central bank's vice president also stressed that it's crucial to avoid "monetary and fiscal policy conflict." Earlier, the ECB decided to raise its interest rate by 75 basis points, after data on the region's inflation data indicated a higher-than-expected figure.

"Economic growth in 2023 will probably be very low, below 1% in the base case," De Guindos stated, adding that "higher interest rates will have a clear impact on corporate solvency." The day before, the ECB's President Christine Lagarde warned that the depreciation of the euro is exacerbating the inflationary pressures in the region.

Baha Breaking News (BBN) / AB