Re:ECB holds key interest rate at 4%
by onlyrealcuzzo on Friday October 27, 2023 @09:23AM
(#38038110)
> Slow to react to inflation
They were slow intentionally. A large subset of the population benefits from low interest rates.
They were reluctant to give up their free money they designed their lives around.
If interest rates were ever to reflect reality long-term, probably ~50% of global wealth would be wiped out. If not for the majority of the population being leveraged on real estate - the ordinary person wouldn't really care.
It's generally not fun when your largest position (your home) goes down ~50% of 5:1 leverage (the average home owner).
Your downvotes wont help your disposable income...
"ECB core obsession raises risk of policy mistake" - https://www.reuters.com/breakingviews/ecb-core-obsession-rai...
"Fears of repeating 2011 mistake led to ECB split on latest interest rate rise" - https://www.ft.com/content/003bfc9f-3af2-4ae9-b582-7d27b75af...
"Christine Lagarde’s Gifts to Populists" - https://www.project-syndicate.org/commentary/lagarde-ecb-mis...
The process of washing their hands starting back in 2022:
"ECB issues mea culpa for poor inflation forecasts" - https://www.ft.com/content/58d45527-8d57-43c3-b2b0-d77a19d10...
"What explains recent errors in the inflation projections of Eurosystem and ECB staff?" - https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/h...