The banking contagion which has spread from the US to Europe was caused by the huge increases in official interest rates

A rally in global bank shares and, significantly, for eurozone government bond yields, may signal that hefty official hikes in interest rates are back on the cards.

Goldman Sachs said it expects the ECB to raise interest rates thrice this year, taking the so-called terminal or peak rate to 3.5% 

Christine Lagarde said traders who had taken dovish rate wagers ‘would be well-advised’ to revise their position

“We focus on core inflation where, unfortunately, there is no good news,” said ECB governing council member Klaas Knot. "Because it is still on the rise. Underlying inflationary pressures show no signs of abating yet."

This week alone has brought several surprises for euro traders.

Eurostat said the unemployment rate in the 20 countries now sharing the euro in November 2022 was 6.5% of the workforce

Latest increase means households paying €415 more a month, or almost €5,000 a year, since ECB started hiking rates in July

European Central Bank will decide on December 14 whether to deliver a third straight interest-rate increase of 75 basis points or moderate the pace to half point

The overall pace of consumer-price increases in the eurozone still stayed above 10% in November, almost all economists predict.

Attention is now turning to some key central banks' meetings this week to see what message they deliver

'This energy crisis is causing massive inflation, which we have to defeat', ECB president Christine Lagarde said

Increases to in the ECB interest rate have the potential to raise mortgage repayments significantly for those on tracker mortgages here.

European Central Bank president Christine Lagarde said borrowing costs will be raised at the next “several meetings” to ensure inflation expectations remain anchored and price gains return to the target.

ECB chief economist Philip Lane, who was governor of the Irish Central Bank previously, said rates could rise for some time.

Further ECB rate hikes of up to 1.25% are expected — and they would significantly increase the cost of people's home loans

As a result of the Federal Reserve’s actions, the yield gap between the US and Europe has widened dramatically and this is the main reason the dollar has significantly outperformed the euro over the last 12 months, writes Ronan Costello.

Analysts say there will be no escaping the ECB rate hikes in July and September for the 460,000 mortgage borrowers in Ireland who are on variable or tracker home loans

Price growth is predicted to hit the 2% goal in 2024 — a precondition for rate hikes under ECB guidance

8.2% inflation in Ireland and record price rises across the EU raise the prospect of even more aggressive ECB interest rate hikes

European Central Bank president Christine Lagarde has taken 'the unusual step' of announcing rate hikes in advance

Ukraine's decision to stop Russia supplying gas through a pipeline in its territory will add to Europe's energy worries

Markets now expect at least three rate hikes of 25 basis points before the year is out, possibly starting as early as July

Markets are betting the -0.5% deposit rate could rise as early as July.

"A monetary-policy tightening would not directly affect imported energy and food prices," warned ECB executive board member Fabio Panetta.

ECB president Christine Lagarde has played down fears about eurozone stagflation, despite Russia’s invasion of Ukraine starting to weigh on the economy while further stoking already-record gains in consumer prices.

European Central Bank is expected to chart its policy course at a March 10 meeting

But it was not enough to pull the Stoxx-600 up from earlier losses as geopolitical tensions sent investors fleeing from risk

EU projects 4.6% inflation in Ireland this year, 1.1 percentage points higher than that predicted for the eurozone as a whole

Christine Lagarde has refused to rule out raising rates if soaring energy prices continue to affect the eurozone

"Some policymakers are now very worried about inflation getting out of control," said one analyst.

Gabriel Makhlouf tells KCLR he doesn't expect the ECB to raise rates, but that we must beware second-round effects of inflation

Despite Christine Lagarde's insouciance, the global economy looks like it is shaping up for rampant inflation

The ECB has “every reason” not to respond as forcefully as the US Federal Reserve to soaring consumer prices, according to President Christine Lagarde.

Kristalina Georgieva's comments chime with those of the ECB's Christine Lagarde amid the upbeat mood in the eurozone

'A hump eventually declines, and this is what we project for 2022'

The ECB is coming under increased pressure to abandon its ultra-easy monetary policy and tackle price growth that is eroding households' purchasing power

Ms Yellen said inflationary pressures had been fueled by shortages of semiconductors and a rise in energy prices, but energy prices would begin to moderate in the months ahead

Inflation forecast for this year was raised sharply, mostly because of higher commodities prices, production bottlenecks and a surge in consumption

The eurozone, including Ireland, will find debt more sustainable in light of ECB's intention not to hike interest rates 

European economies are starting a robust recovery on the back of an accelerating vaccination campaign

Eurozone business growth accelerated at its fastest pace in over three years in May, but ECB president Christine Lagarde said an uncertain recovery still needed emergency support from the ECB.

Withdrawing fiscal support would risk delaying recovery and amplifying long-term scarring effect, she says

'This is an asset and it’s a highly speculative asset which has conducted some funny business,' says Christine Lagarde, as cryptocurrency hits records in market