&NewLine;<p>Marcelo Rebelo de Sousa &comma; the President of the Portuguese Republic&comma; believes that the decision of the European Central Bank &lpar;ECB&rpar; to maintain&rsquo&semi;interest rates is not good news&comma; although&rsquo&semi;expected&period; He considers that the real reason for this expectation is linked to the&rsquo&semi;interest rates. <a href="https://vivreauportugalconsulting.com/election-portugal-fait-voter-les-fantomes/" data-type="post" data-id="8559">elections&period;</a></p>&NewLine;&NewLine;&NewLine;&NewLine;<h2 class="wp-block-heading">ECB Holds Rates "Not Good News" Reveals Marcelo's "True Reason</h2>&NewLine;&NewLine;&NewLine;&NewLine;<p>"It&rsquo&semi;s expected news but not good news&period; Although the reason given is linked to&rsquo&semi;inflation in certain countries in Europe&comma; I think the real reason is something else &colon; it&rsquo&semi;s concern about the American and European elections&comma; with their consequences on the war and&comma; consequently&comma; the weight this may have on the economic situation throughout 2024&period; Hence the&rsquo&semi;wait for three more months"&comma; said Marcelo&comma; during an intervention broadcast by RTP3&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Analysts consulted by Lusa believe that the European Central Bank and the US Federal Reserve will coordinate an interest rate cut in June&comma; emphasizing the pace of the cut&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<figure class="wp-block-image size-full"><img src="https://vivreauportugalconsulting.com/wp-content/uploads/2024/03/bce.jpg" alt="bce, marcelo" class="wp-image-11882"/></figure>&NewLine;&NewLine;&NewLine;&NewLine;<p>After years of historically low interest rates&comma; the US Federal Reserve took the lead over the European Central Bank in the fight against&rsquo&semi;inflation&period; In March 2022&comma; it began the end of the&rsquo&semi;era of cheap&rsquo&semi;cheap money by raising rates for the first time since 2018&comma; by 25 basis points&period; The ECB didn&rsquo&semi;t raise rates until July 2022&comma; for the first time in 11 years&comma; with an increase of 50 basis points&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">Analysts predict ECB and Fed rate cuts in June</h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Analysts consulted by <a href="https://www.lusa.pt/" target="_blank" rel="noreferrer noopener">Lusa </a>believe that the European Central Bank and the US Federal Reserve will act in concert to cut interest rates in June&comma; emphasizing the pace of the cut&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The difference in timing has led to criticism of the European Central Bank's "slowness" to act&comma; but the two central banks could now be aligned for the first adjustment&comma; according to market expectations&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The European Central Bank and the Fed&comma; who kept interest rates unchanged at recent meetings&comma; are assessing whether&rsquo&semi;inflation is sufficiently under control to start cutting rates&period; This would make borrowing cheaper for consumers and businesses&comma; encouraging them to take out loans&comma; spend and invest&comma; thus avoiding an economic slowdown that could&rsquo&semi;lead to higher unemployment&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>As expected&comma; the ECB on Thursday kept interest rates unchanged for the fourth time in a row&period; The president of the&rsquo&semi;institution&comma; Christine Lagarde&comma; said at a&rsquo&semi;a press conference that the central bank was making "good progress" in bringing inflation back to the 2 per cent target&comma; but that it had not yet succeeded&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The ECB has revised downwards the average inflation forecast for the eurozone to 2&percnt; in 2025&comma; bringing the expected inflation for next year in line with the central bank&rsquo&semi;s price stability objective&comma; forecasting a rate of 2&comma;3&percnt; in 2024&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Lagarde's statements created market expectations about the timing of a rate cut&comma; stating that economic data would dictate the bank's next step and that&rsquo&semi;in April&comma; she would have "a little" more&rsquo&semi;information and "a lot more in June"&period;</p>&NewLine;
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