[theold]

The European Central Bank on Thursday announced a further rate hike of 50 basis points, signaling it is ready to supply liquidity to banks if needed, amid recent turmoil in the banking sector.

https://www.cnbc.com/2023/03/16/ecb-rate...-hike.html

[Sticw]

The reason why the central bank's have to up rates now even when things are not rosy in that they do not want to end up like Japan. The Japanese's forgotten decades came about because of a collapse and even with rates cut to zero did nothing to revive growth. The Japanese companies mostly left Japan and went around other countries leading to economic growth elsewhere.

Of course after 3 to 4 decades, there has been signs of Japanese companies heading back to Japan. But no country would want to take the chances and follow the Japanese's path of lost decades...

So the correct move is inflation up rates until collapse then lower rates until fair level and central bank's buy up the cheap assets and m&a takes place for the next economic wave...

[Tangsen]

More banks …..running