“It is very probable that we will raise interest rates by 50 basis points,” said the president of the ECB, Christine Lagarde, recalling the next meeting scheduled for Thursday 16 March.  «It was a decision that we indicated at the last meeting – she continued in the interview with the Spanish publishing group Vocento – and all the numbers seen in recent days are confirming that this increase is very, very likely.’ The news, therefore, already anticipated a few days ago speaking on the Spanish TV Antenna, is ever closer to confirmation. On that occasion, Lagarde hypothesized further increases, in addition to the one scheduled in about ten days. “At this point, it is possible that we continue that path,” he underlined. «Impossible» however to say now how much the increase will amount «in each single meeting».
What banks can do about mortgages
As for the future, Lagarde didn’t say too much: “We depend on the data, many central bank governors are spreading their opinions and personal analyses, as president of the ECB I have to focus on the data”. Important help could come from European banks, explained the president, launching the necessary measures to alleviate the rise in mortgage rates so as to avoid serious problems for debtors. “I’m sure many banks are ready to renegotiate – she added -. It’s in their interest and they don’t want unpaid debts on their balance sheets.’ In Spain, as well as in Italy, it has been hypothesized to apply a cap, a ceiling, to rates, an idea which according to Christine Lagarde remains a matter «between creditor and debtor».
Index pensions?
During the interview, the issue of indexing pensions to the inflation index was also addressed, on which the president of the ECB expressed her opinion: «Indexing hasn’t helped us in the past and generally helped to fuel inflation, which then got out of control – he concluded -: I don’t think it’s a good idea to go back”.