The European Central Bank (ECB) is reconsidering the path of interest rate hikes in light of last month's banking turmoil, but remain committed to reining in core inflation. The events of the past month have caused some ECB policymakers - such as Austrian National Bank Governor Robert Holzmann - to rethink their plans for rate hikes. The central bank hiked rates by 50 basis points in mid-March at the height of the banking turmoil, despite some calls for the central bank to pause, but this week, several Governing Council members noted the risk of a knock-on economic impact as interest rates continue to rise in an effort to tackle inflation. Headline inflation in the euro zone dropped significantly in March to an annual 6.9%, largely as a result of falling energy prices, but core inflation - which excludes volatile energy, food, alcohol and tobacco prices - rose to an all-time high of 5.7%. The events of the past month have caused some ECB policymakers to

The post Banking crisis Forces Ecb Policymakers to Rethink Rate Hikes, but focus still firmly on inflation appeared first on Balanced News Summary.