MP's comment: European countries to change discount rate soon

18.03.2022,17:00


March 18, Fineko/abc.az. "After the U.S. Federal Reserve System (FRS) raised the base interest rate by 25 basis points to 0.25-0.5% per annum, the discount rate will also be changed in other leading countries," ABC.AZ reports, quoting MP Vugar Bayramov.

He noted that the Fed's previous interest rate increase was in December 2018: "Since then, the base interest rate has only been declining. After the decision in the U.S., the Bank of England also raised the discount rate from 0.5 to 0.75 percent. It is expected that because of the Russian-Ukrainian war, the inflation rate in the UK will rise to 8 percent. Even if the European Central Bank is in no hurry to raise the discount rate, the monthly inflation rate in the eurozone rose to 5.9% last month. Nevertheless, experts do not rule out that the discount rate will soon change in the eurozone.”