Philip Lane is urging the ECB to assign a higher weight to housing costs in Eurozone inflation measurements. This comes after the ECB cut interest rates deeper into the negative zone and restarted its program of quantitative easing; these moves are directly tied to fending off fears of deflation and the argument for a change in inflation measurement seems to suggest that the ECB is attempting to make it easier to hit its inflation target.
Inflation is necessary for global growth, but is your money safe from it? An inflation rate of 2% means that you would need $1.02 next year to buy what costs you $1 today. You must ensure that your investments are at the very least beating inflation. Traditional fixed deposits are barely meeting inflation rates, and in many countries (specifically in Europe due to monetary policy being aimed at discouraging saving) depositors face negative interest rates where their money not only doesn’t keep up with inflation, but they actually pay to have it stored in a bank.
Whether your goal is to keep your money safe, beat inflation, or accumulate wealth, AIX Investment Group is the perfect partner to help you plan your financial future. Contact us today to reach one of our Financial Advisors and learn more about how we can help you grow your capital sustainably.