Frankfurt European Banking Congress to begin
The Frankfurt European Banking Congress (EBC) will be held today.
The EBC is a forum hosted by leading German banks to discuss Europe’s role in global politics and finance. This year’s panel is focused on post-pandemic financial recover and strengthening European markets for future development. They are expected to discuss supply chain bottlenecks, soaring energy prices and savings interest rates.
There have been recent hints of division among European monetary policymakers over future financial policy. This, along with inflation driven by rising energy prices and increased demand for consumer goods, has complicated European banking investment decisions. With savings high and markets volatile, today’s meeting will play an important role in outlining European monetary and fiscal policy.
Expect the Congress to push for continued low interest rates in the short- to medium-term to promote investment needed for post-pandemic growth. Cheap credit will likely promote increased investment in green energy initiatives like wind energy and electric vehicle manufacture to keep development high while reducing reliance on pricey and sometimes unreliably supplied fossil fuels. Medium-term, should inflation continue longer than the central banks predict, European banks may raise interest rates above the current 0% to slow the economy.
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