European Central Bank Hikes Interest Rates 75 Basis Points

Image copyright: Reuters [via Business Insider]

The Spin


Establishment-critical narrative

The ECB seems to be protecting its own reputation, not the economies of eurozone countries. While stronger economies like Germany may be able to weather rate hikes like this, more robust borrowers like Italy won't be able to sustain such measures. Slowing demand isn't the solution, so all the ECB is doing is pushing Europe toward a recession to save face.


Pro-establishment narrative

The ECB has already made immense progress on cooling borrowing, but there's more to be done. This third interest-rate increase will help combat the rising prices caused by energy, supply chain problems, and post-pandemic recovery issues.


Metaculus Prediction


Establishment split

CRITICAL

PRO

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