Obstacles for its normalization monetary policy the war puts her Ukraine. The minutes from the last meeting of its board of directors ΕΚΤ published today showed that the Central Bankers, who are followers of the so-called hard line, are pushing hard in order to quickly turn the monetary policy in a more restrictive direction. This is because they believe that the risk is now visible – before the war when the meeting took place – of creating an inflationary spiral in the economy through wage increases.
However, the new data caused by the war complicate the situation and the questions that the Eurosystem Central Bankers will be asked to answer next week when the ECB’s Board of Directors will meet again.
The new uncertainty, as well as the immediate economic consequences of the war, is still difficult to pass on to econometric models. Therefore, economists estimate that at next week’s ECB meeting the inflation forecasts for 2023 and 2024 will most likely signal action by the ECB. At the same time, however, the war increases the risk of stagnant inflation, a development which analysts predict will prevent the ECB from normalizing its monetary policy.
In the domestic market and more specifically in HDAT, the volume of transactions amounted to 54 million euros, of which 28 million euros related to purchase orders. The yield on the 10-year bond closed at 2.42% from 2.40% yesterday against 0.05% of the corresponding German bond, resulting in a margin of 2.37% from 2.47% that closed yesterday.
In the foreign exchange market, the dollar is strengthening significantly today as it traded early in the afternoon at $ 1.1071 from the level of $ 1.1121 that the market opened.
THE target price set for Euro / USD exchange rate announced by the ECB amounted to $ 1,076
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