Elena Nikulina

Raising rates does not resolve energy shocks, Daniel Lacalle argues

Raising rates does not resolve energy shocks, Daniel Lacalle argues
Central banks rate hikes and energy

Daniel Lacalle, chief economist and investment manager at Tressis Gestion, critiques central bank policy responses to energy crises.

He compares interest rate hikes amid energy shocks to raising taxes to reduce rainfall, suggesting these measures may only increase the burden on households and businesses without addressing the root cause.

Lacalle has previously tracked fluctuations in energy markets, noting that U.S. WTI oil prices fell below $69 per barrel as geopolitical risks eased and supply conditions normalized. In a separate update, he observed that rate hike estimates have dropped rapidly alongside declining inflation pressures in financial markets. These developments provide context for his recent critique of central bank responses to energy-driven shocks.

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