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"The ECB Gets Ready for a Pivot on Policy Rates — What Will the Bank of England Do? Interview with Tom Samuelson on International Business Times

Nov 3, 2022 9:06:13 AM

Tom-1-1"ECB Gets Ready for a Pivot on Policy Rates — What Will the Bank of England Do?" Insights from Vineyard Global Advisors Chief Investment Officer Tom Samuelson, CFA, CMT 

author atreached out to Vineyard Global Advisors CIO Tom Samuelson for his perspective on the European Central Bank's recent rate hikes, high inflation numbers, and what it could mean for the Bank of England.

After raising interest rates by 75 basis points, many speculate that the European Central Bank's focus might include a change in policy rates. However, Tom Samuelson is skeptical about that possibility, and BNP Parabis posits that the ECB should be more concerned about overtightening.

This Article Explores...

With Double Digit Inflation Numbers Out of Germany, the ECB Has a Long Road to Bringing Inflation Under Control.

Central banks typically need to raise interest rates above the inflation rate to bring down inflation. However, Germany's inflation rate is nearly eight times higher than the ECB's current 1.50% interest rate, indicating that conservative rate hikes aren't likely to impact the fight against inflation.

As Central Banks Everywhere Work to Curb Inflation, Experts Believe the Bank of England Could be Facing Similar Policy Decisions.

With inflation's peak looming ominously on a distant horizon, there's plenty more pain to come regarding increases in borrowing costs. The ECB's decision to initiate another significant rate hike signals that the Bank of England could follow suit as early as next week.

Read the Full Article Here...

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Guest: Tom Samuelson, CIO of Vineyard Global Advisors


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