Stock Groups

ECB’s Rehn warns governments to count on higher rates By Reuters

[ad_1]

© Reuters. FILE PHOTO Olli REHN, Finland’s central banking governor speaks in Helsinki on July 17, 2018. REUTERS/Ints Kalnins/File Photo

HELSINKI (Reuters) – Finland’s central bank raised its 2021 growth estimate on Thursday and warned that even if a rate hike is still far into the future, governments should prepare for the eventual rise in borrowing costs.

Due to increasing vaccination rates, and supportive economic policy the central bank expects Finland to grow its gross domestic product by 3.5% by 2021. This is up from 2.9% in June. The 2022 forecast was cut to 2.8% from 3 %.

However, the central bank stated that countries in the Euro Area have high debt levels which could affect the stability of their expansion.

Olli Rehn, chief of the Finnish central bank said that even though an increase in interest rates was not imminent, it would eventually happen. All countries in the euro zone should take this into consideration when planning their budgets.

This central bank raised the inflation rate for 2021 by 1.5% to 1.5%, and retained its forecast of 1.6% for 2022.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]