He affirms that the tools to stabilize inflation are in place and will be used
BARCELONA, 31 May. (EUROPA PRESS) –
The Governor of the Bank of Spain, Pablo Hernández de Cos, anticipates that the European Central Bank (ECB) will raise interest rates in July and September, and will later decide whether to continue increasing them.
He said it this Tuesday at a conference at Esade to address the situation of the Spanish economy and cryptocurrencies, together with the dean of the business school, Josep Franch, and professor Carlo Sala.
Hernández de Cos has confirmed that inflation is growing very fast and that “the limits are non-existent”, but that the regulator’s objective is to stabilize inflation at 2% in the medium term.
“We have the tools to do it and we will use them,” he assured, recalling that a good part of the institutions expect to reach this price level of 2% in 2024.
The Governing Council of the ECB is scheduled to meet on July 9, again on August 2 and, after the summer holidays, on September 8, and if the predictions come true, it would leave interest rates behind at 0% or even , negative.
Hernández de Cos has focused his speech on crypto-financial assets and explained that they currently account for 1% of the global financial system, a weight greater than that of the subprime market before causing the financial crisis of 2007, although he has assured that ” Doesn’t mean it ends the same way.”
He has assured that the interconnection between the crypto environment and the traditional financial world is growing and that large financial players are already offering services in the sector.
He has warned that cryptocurrencies can pose a risk to financial stability and that during the first quarter of 2022, fraud with this type of asset reached 1,300 million euros worldwide.
He has warned that one of the main risks of these assets is “the limited knowledge” that some of the investors have and has exemplified it with the fact that 20% of investors in cryptocurrencies in the United Kingdom think that their investment is insured by the regulatory authorities. , when it is not.
Among other risks, it has highlighted its impact on the banking sector as a new competitor and that a potential consolidation of cryptocurrencies as a payment method “can create a parallel system.”