Calviño warns that inflation will be “higher for a longer time”


  • The president of BBVA affirms that there will not be “excessive increases” in risk premiums

The economic vice president, Nadia Calvinoassured this Monday that the Government is working with a “new scenario of higher inflation for longer at the international level”. The measures deployed by the Executive, he assured, have made it possible to reduce the CPI between two and three points and place it in May in line with the euro zone average. But the latest news from the international energy markets “they are not positive”with the cut of Russian gas and oil that are intensifying the rise in international prices.

During her participation in a course organized by the APIE and the Menéndez Pelayo University, the number two of the Executive has thus seemed to leave the door open for the Government prolong some of the measures that it has already put in place to combat the inflationary spiral or roll out new ones. “Fortunately, we now have the mechanism of the gas cap in the Iberian electricity generation wholesale market and the fuel allowancetwo measures that are making it possible to cushion the effect of the rise in international prices”, he highlighted.

Calviño, likewise, has praised that the European Central Bank (ECB) has acted “quickly and decisively” to prevent the fragmentation of debt markets (that is, that the risk premium of the southern countries skyrockets). It is necessary, he stressed, to reconcile the “progressive and necessary standardization” of interest rates with avoiding “any risk of fragmentation” in the public debt markets.

The vice-president, in this line, has ensured that the Treasure has made good use of negative types in recent years to prepare for the “necessary” normalization of monetary policy. Thus, the average rate of debt in circulation is below 1.6%, the medium term maturity has been extended to over eight years, almost 60% of the issues planned for the year have already been executed and only 15% of the portfolio must be refinanced in 2022.

assumable rise

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In the same forum, the President of BBVA, Carlos Torres Vilastated that the ECB “clearly” has to respond to inflationary pressures by raising rates and added that the current situation in Spain to face this increase in money “It has nothing to do with that of past times”like that of 2008. “Together with the commitment to correct transmission of monetary policy, it will very plausible that we have a path of interest rate hikes, which is what must be done to control inflation, that do not produce excessive increases in the risk premium”, he defended.

The banker, on the other hand, has shown no interest in making a purchase of a competitor in Spain now that investors reward entities with greater exposure to the country. “Mergers are not the issue we are paying attention to. It even bores me, not in a literal sense but in a strategic sense. For me it is much more interesting to think about decarbonization or innovation over digitization,” she said.


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