Because the rate hike doesn’t risk hurting employment

Despite the banks’ slide on the stock market triggered by the bankruptcy of Svb, today there will probably be the announced further interest rate hike of 50 basis points and the markets expect further increases. Since last year, the ECB has raised interest rates from an all-time low of -0.50 percent to 3 percent. In the past months a thousand voices had been raised for avoid rising interest rates with the argument (and the hope) that when the cost of gas ended, inflation would also end. Unfortunately, this hope has not yet come true. Core inflation also excluding food and energy continues to be high, at 6.4 per cent in February.