ECB hikes interest rates for first time in 11 years
Al JazeeraMAR 28 2022
Like all major economies, the ECB is having to control inflation by raising rates without bringing a recession. To act too tough on inflation could create market panic, but to do nothing at all could be just as damaging. This is further complicated as the eurozone is propping up indebted countries who are unable to deflate their own currencies - it seems like every policy choice could potentially risk a repeat of the eurozone crisis.
Although the economy may appear to be taking a turn for the worse, and many fear that the 2008 eurozone crisis is going to repeat itself, conditions are not as bad as they appear. Banks are still in relatively good shape, property prices are not expected to collapse and asset prices will likely not drop. In fact, some European countries may even benefit from recovery packages.