Christine Lagarde has argued that interest rates could remain steady for several quarters
The bond market is in a positive mood today, even though internal resistance is strengthening European Central Bank (EKT) not to hastily reduce its interest rates.
One of the Eurozone’s leading central bankers, the head of Germany’s central bank, the famous Bundesbank, Joachim Nagel, said today that the ECB should resist any temptation to reduce interest rates early, as the hardest part of fighting the recent burst of inflation may still lie ahead. He noted that “we are facing the most difficult part of our journey forward”, adding that “we need patience to wait for the full effect of policy tightening on inflation to materialise”.
It is noted that ECB chief Christine Lagarde has argued that interest rates could remain steady for several quarters and warned that it is too early to celebrate as inflation is very likely to rise again in the coming months, on technical grounds.
In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 272 million euros were recorded, of which 88 million euros related to purchase orders.
The performance of the Greek 10-year-old bond stood at 3.82%, up from 3.83% yesterday, against the German counterpart’s 2.62%, bringing the margin to 1.2%.
In the foreign exchange market, the euro moves upwards against the dollar, with the result that in the afternoon the European currency trades at 1.0908 dollars. from the $1.0852 level, which opened the market.
