The persistence of inflationrunaway to 8.6% in the euro zone and 10.2% in Spain in June, pushed the European Central Bank (ECB) to undertake the first rise in the price of silver in 11 years.
The initial idea is an increase of 0.25 pointsbut the high levels of the consumer price index (CPI) mean that some members of the board of governors, who will decide today, opt for an increase of 0.50 points.
In any case, a further increase is also expected in September. In the United States, there have already been three increases by the Federal Reserve, but the difference is that the rise in the general price level there is due to an acceleration in demand. The problem is that in Europe it is due to supply and it remains to be seen whether the rise in the price of silver is the right tool and, in any case, the ECB which presides Christine Lagardee, you need to refine a lot to avoid dampening demand and causing a recession.
Higher yields in the United States strengthened the dollar and brought it to parity with the euro for the first time in 20 years. The markets are waiting for the ECB’s policy.
For now, there has been an escalation in peripheral country debt yields, including Spain, which has led the central bank to meet urgently and announce measures to stop this development.
Inflation pressure led the 12-month Euribor, the main benchmark for mortgage loans in Spain, to exceed 1%. In April, he left the negative ground he had been in six years earlier.