ECB Interest Rate Decision Today.

The ECB interest rate decision is expected to see no change for June, with hikes looking likely for July and September as Europe’s inflation figures continue to sore. Hungary hit 10% inflation which puts further pressure on the ECB to act in order to combat the continuing rise across the continent.

The Bank of England has already raised interest rates four times since December and is expected to do so again next week. This would take the BOE rate to 1.25%, despite a weak outlook for economic growth in the UK. The Organisation for Economic Co-operation said on Wednesday that Britain’s economy would grow by 3.6% this year before flat-lining at 0.0% next year, the weakest forecast for 2023 among all countries in the Group of 20 with the exception of Russia.

Britain’s housing market showed signs of a slowdown in May as fast-rising inflation and high interest rate tightened the financial squeeze for many households. RICS said expectations for residential property sales over the next three and 12 months deteriorated after showing little change in May. Prices were propped up by the long-standing shortage of properties coming onto the market.

The price of petrol saw its biggest daily jump in 17 years on Tuesday with a rise of more than 2p a litre. Soaring fuel prices have been driven by the war in Ukraine and moves to reduce Europe’s dependence on Russian oil. With food and energy bills also surging, many households are under pressure. The average price of petrol rose to 180.73p per litre on Tuesday, the RAC said. Meanwhile, the average price of diesel rose by almost 1.5p to another record high of 186.57p per litre, making the cost of filling a 55-litre family car £102.61.

U.S. Treasury Secretary Janet Yellen said on Wednesday that inflation would not be a decade-long problem for the United States and that the Biden administration’s COVID-19 rescue spending contributed only modestly to price hikes. Fielding questions from lawmakers on high inflation for a second straight day, Yellen said that recent readings above 8% were unacceptable for the United States.

The current Federal Reserve interest rate, or federal funds rate, is 0.75% to 1.00% as of May 5, 2022. The Federal Reserve lifted its core interest rate by 0.5% on May 4. It’s the second hike in two months and the largest increase since 2000 as the Fed focuses on fighting inflation levels that are at 40-year highs.

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