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European Central Bank gathers after borrowing costs rise

June 15, 2022

Via: ABC News

The European Central Bank’s rate-setting council will hold an unscheduled meeting Wednesday “to discuss market conditions,” with borrowing costs for several countries having increased after the bank said it would raise interest rates — bringing back bad memories of the European debt crisis from over a decade ago.

The bank last week announced the hikes in July and September without specifying how it would protect countries sharing the euro currency if borrowing costs rose excessively — as they did during the 2010-2012 debt crisis. That’s a potential concern for heavily indebted governments, notably Italy.

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