logo
IMF urges ECB to keep rates at 2% barring inflation shocks

IMF urges ECB to keep rates at 2% barring inflation shocks

Yahoo3 days ago
Investing.com -- The International Monetary Fund (IMF) believes the European Central Bank (ECB) should maintain its current 2% deposit rate unless significant shocks alter the inflation outlook, according to Alfred Kammer, head of the IMF's European Department.
Speaking on Wednesday at the ECB Forum on Central Banking in Sintra, Portugal, Kammer told Reuters that "risks around euro zone inflation are two-sided."
"This is why we think the ECB should stay the course and not move away from a 2% deposit rate unless there is a shock that materially changes the inflation outlook. Right now we don't see anything of such magnitude," Kammer stated.
The ECB has reduced rates by two percentage points since June 2024 and has indicated a pause for July, though financial markets still anticipate another cut to 1.75% before the end of the year.
The IMF's position differs from market expectations partly due to its higher inflation forecast for next year compared to the ECB's projections. While the ECB expects price growth to fall below its 2% target for 18 months starting from the third quarter, with inflation reaching a low of 1.4% in early 2026, the IMF forecasts inflation at 1.9% for next year.
Kammer explained the difference: "For next year, we see inflation at 1.9%, which is above the ECB's own projections, partly because we take a different view on energy prices."
Related articles
IMF urges ECB to keep rates at 2% barring inflation shocks
Tariff rush lifts ASEAN exports, but BofA warns payback looms in H2
Dollar nursing double-digit losses, but bears aren't done yet: MS
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Warning Signs for Russia's Economy Are Flashing Red
The Warning Signs for Russia's Economy Are Flashing Red

Wall Street Journal

time33 minutes ago

  • Wall Street Journal

The Warning Signs for Russia's Economy Are Flashing Red

Russia's sanctions-defying economy, propelled higher by the Ukraine war, is suddenly coming back down to earth. Fueled by massive military spending and steady oil exports, Russia recorded some of the highest growth rates among major economies over the past two years. But in recent weeks economic indicators have been flashing red: Manufacturing activity is declining, consumers are tightening their belts, inflation remains high and the budget is strained.

LVMH Acquires French Media Group Bey Médias
LVMH Acquires French Media Group Bey Médias

Yahoo

time2 hours ago

  • Yahoo

LVMH Acquires French Media Group Bey Médias

NEWSMAKER: LVMH Moët Hennessy Louis Vuitton is continuing to expand its media footprint with the acquisition of French media group Bey Médias. Financial details of the deal were not disclosed. More from WWD Moynat Opens Avenue Montaigne Boutique Jonathan Anderson's Dior Debut Draws Daniel Craig, Robert Pattinson, TXT and Rihanna Jonathan Anderson on Building His Dior World, One Show at a Time The luxury group was already a minority shareholder of the company, which publishes daily newspaper L'Opinion and financial news website L'Agefi. It has bought the stakes of founder Nicolas Beytout as well as those of other shareholders including Théthys, which is owned by L'Oréal's Bettencourt founding family; American businessman Ken Fisher, and Dow Jones, the group owned by media titan Rupert Murdoch. According to sources with knowledge of the matter, the acquisition was done through the group's Ufipar subsidiary. L'Opinion and L'Agefi will be in an entity distinct from the Les Échos – Le Parisien group. It is understood that the publications' editorial structures and teams would remain in place. Beytout will continue to serve as the media group's president as well as president and publishing director of L'Opinion, with Rémi Godeau remaining as editor in chief. Meanwhile, Alexandre Garabedian is staying as editorial director of L'Agefi. L'Opinion and parent company Bey Médias were created in 2013 by Beytout, former president of Les Echos – purchased by LVMH in 2007 – and former editorial director of Le Figaro. At the time, they received financing from the French luxury group to launch. Known for its liberal and pro-European stance, it has a partnership with Dow Jones-owned Wall Street Journal, allowing it to translate and publish articles drawn from the American publication. In 2019, Bey Médias acquired L'Agefi, a 114-year-old publication then owned by Artémis, the Pinault family's holding company. Last year, the media group entered unsuccessful negotiations with Czech billionaire businessman Daniel Kretinsky. Prior to that, it was in talks with French-Lebanese global transport tycoon Rodolphe Saadé, who owns several media including business news site La Tribune and TV channel BFMTV. LVMH also owns French people magazine Paris Match, acquired in October, and has owned daily newspaper Le Parisien and its national counterpart, Aujourd'hui en France, since 2015. Best of WWD EXCLUSIVE: Sean Combs Regains Control of Sean John Brand Isabel Marant Said in Play Again: Sources Holding Industriale Invests in Shoe Specialist Valmor Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

KFC to open 50 new stores across UK in 2025
KFC to open 50 new stores across UK in 2025

Yahoo

time2 hours ago

  • Yahoo

KFC to open 50 new stores across UK in 2025

Fast food giant KFC has unveiled plans to establish more than 50 new dining locations across the UK in 2025, forming a key part of a £1.5bn ($2.04bn) investment to expand its presence in the UK and Ireland (UK&I). Currently operating 1,000 restaurants nationwide, KFC has set a target to open 500 additional venues by 2034. BDC Magazine reports that the restaurant company has pledged £466m up to 2030 to drive this expansion, while also committing to revamp more than 200 existing sites to upgrade facilities and improve customer satisfaction. To achieve this growth, KFC is searching for both freehold and leasehold properties, focusing on sites in retail parks, leisure complexes, high streets, transport hubs, shopping centres and food courts. The chain is particularly interested in drive-through locations ranging from 0.3 to 1.5 acres and in-line units spanning between 1,200ft² and 2,500ft². The expansion will cover all regions of the UK and Ireland, with a strong emphasis on accessibility and prominence. To encourage property experts to identify suitable locations, KFC is offering a £20,000 finder's fee for successful site recommendations. The initiative highlights KFC's confidence in the UK and Irish markets and its dedication to long-term development. In November 2023, KFC UK&I collaborated with Uber Direct to facilitate fast order deliveries to its customers in the region. Orders placed by the customers via the KFC app will use the same tech and courier network that powers Uber Eats. "KFC to open 50 new stores across UK in 2025" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store