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Home Banking Ample liquidity puts the ECB’s independence at risk, and more

Ample liquidity puts the ECB’s independence at risk, and more

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Ample liquidity puts the ECB’s independence at risk By Ignazio Angeloni

The European Central Bank’s policy orientation – a rapid series of small interest rate increases to rein in inflation – is now clear. ECB President Christine Lagarde said in the December press conference that the situation ‘predicates another 50 basis point rate hike at our next meeting, and possibly at the one after that, and possibly thereafter’. However, the consequences of this may later hit back at the central bank where it hurts most: its independence.

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