Highlights (week 36/2022)
Updated: Sep 11, 2022
European Central Bank rate decision on September 8th
The ECB raised interest rates by 75 basis points (record rate hike) in its September 2022 meeting, matching expectations from most analysts.
The main refinancing rate is at 1.25%, the marginal lending facility at 1.5% and the deposit facility one at 0.75% with effect from the 14th of September. Policymakers also said there will be future rate hikes in the next meetings (changes will be data-dependent).
During the press conference, the President Christine Lagarde noted that the ECB is far from the interest rate that will help return inflation to the ECB target of 2%.
Inflation projections of the Central Bank have also been revised upwards to 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024, economic growth was revised lower to 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024.
Source: European Central Bank
Albania inflation rate August 2022
The annual inflation rate in Albania accelerated for the seventh month to 8% in August of 2022, from 7.5% July. It was the highest reading since December of 1998, mainly due to rising prices of transport (19.3%) and food & non-alcoholic beverages (14%). Consumer prices were up by 0.8% on a monthly basis.
Source:INSTAT
Markets
Europe
European markets closed higher Friday, as investors reacted to a record rate hike by the European Central Bank and comments from FED executives. The pan-European Stoxx 600 ended up 1.06% for the week, with most of the sectors and major bourses in positive territory.
U.S
Stocks have been volatile recently as expectations of a 0.75 percentage point rate hike by the FED this month grew on Wall Street, after Powell comments saying that he is “strongly committed” to bringing down inflation. But all three major averages ended the week on a positive note after three straight negative weeks. The Dow was up 2.66%, while the S&P 500 3.65%. The Nasdaq Composite closed 4.14% higher.
