Makhlouf dismissed notions of immediate rate reductions and denied reaching the peak of economic recovery. While he expressed optimism about inflation moving towards the 2% target, he acknowledged that core underlying inflation remains a challenge. He also voiced uncertainty about the return of low-rate environments, suggesting that the government’s role in post-pandemic life and the potential larger roles of governments in economies could be significant factors.
In light of the European Central Bank’s (ECB) aggressive rate hikes aimed at achieving a 2% inflation target, Makhlouf indicated that it’s too early to consider reducing borrowing costs. This stance comes amidst a faltering euro-zone economy and intensifies speculation around the timing of crucial rate cuts.
Beyond these economic concerns, Makhlouf emphasized the importance of financial literacy in school curriculums. He argued that preparing children for future financial responsibilities is essential for financial stability. This responsibility, he said, lies not only on regulation but also on consumers’ understanding of financial innovations. He applauded the government’s focus on financial literacy, viewing it as a collective obligation of parents, teachers, and governments.
The period leading up to their pivotal December meeting is seen as crucial in shaping these strategies and addressing these pressing economic issues.
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Source: Economy - investing.com
