European Central Bank Implements First Interest Rate Increase in Nearly Three Years

European Central Bank Implements First Interest Rate Increase in Nearly Three Years

0 views·

Words to learn

Learn these Dutch words first, then read the full article — the same sentences as the original, with more Dutch words appearing as you read toward the end.

de bank
the bank, banks
hebben
have, has, having, had
de rente
the interest, interest rates
het jaar
the year, years
dat
that, which
meer
more, the most
zeggen
say, says, saying, said
naar
to, towards
de prijs
the price, prices
stijgen
rise, rises, rising, rose, risen
gaan
go, goes, going, went, gone
de economie
the economy, economies
voor
for, in front of
geven
give, gives, giving, gave, given
het land
the country, countries
de procent
the percent, percentage, percentages
ook
also, too, as well
nu
now, currently
maar
but, only
zullen
shall, will
bij
at, by, near
om
around, about
minder
less, fewer, the least
en
and
met
with

Article

The European Central de bank (ECB) hebben raised de rente rate in the eurozone naar 2.

25 percent, marking the first increase in almost three het jaar.

This is a hike of a quarter de procent point, the smallest possible step.

met this rate increase, the ECB aims naar counter inflation in Europe, dat is primarily driven bij stijgen gas en oil de prijs.

Since the beginning of the conflict in Iran, the Strait of Hormuz hebben largely been closed, leading naar a reduction in oil supply on the global market.

The strait hebben nu been closed voor meer than a hundred days.

Inflation Remains High bij the start of the Middle East conflict, the ECB kept de rente unchanged.

ECB President Christine Lagarde indicated in March en April dat higher inflation was expected, maar it was then decided naar leave the rates unchanged.

bij dat time, inflation in the eurozone was 1.

9 percent; it stijgen naar 3.

2 percent in May, while the ECB aims voor inflation om 2 percent.

The ECB nu projects inflation of 3 percent voor all of 2026.

de rente rate increase is intended naar make borrowing meer expensive voor companies, thus slowing down de economie slightly en curbing price stijgen.

Different Economic Situation The previous interest rate increase happened in September 2023.

dat followed a series of hikes dat began in 2022 due naar the outbreak of the war in Ukraine, dat led naar sharply stijgen energy de prijs.

However, the current economic situation is different, zeggen Lagarde.

ING economist Bert Colijn confirms this: "Back then, de economie was stronger; people hebben saved a lot during the corona crisis as vacations were canceled.

nu, de economie is not great, maar ook not bad.

This weaker economy makes the ECB meer cautious met rate hikes."

According naar Colijn, it is especially unclear what the ECB zullen do next.

The central de bank hebben indicated dat inflation forecasts remain uncertain voor nu, en the effect of the current energy price shock depends on its intensity en duration.

Lagarde emphasizes dat the ECB zullen decide on further rate hikes "per meeting".

In the Netherlands, inflation was 3.

5 percent in May.

It is still uncertain how the recent rate hike zullen affect de economie, maar it could, voor example, lead naar a stijgen savings interest rate.

However, de bank are free naar set their own de rente voor savers.

Inflation is ook stijgen in other parts of the world, such as the United States, where inflation was 4.

2 percent in May due naar higher energy de prijs.

Want to read articles like this and speak Dutch at the next level? Join one of our groups

Dutch with tutor in group A0-A1

Dutch with tutor in group A0-A1

A live, tutor-led group course for absolute beginners (A0–A1), from day one.

Dutch with tutor in group A2

Dutch with tutor in group A2

A live, tutor-led group course to build real conversational confidence at A2 level.

Nederlandse taal in groep A2-B1

Nederlandse taal in groep A2-B1

Een live groepscursus Nederlands van A2 naar B1, met certificaat aan het einde.