ECB: The energy transition will prohibit any rise in short- and long-term interest rates

The energy transition will have several effects on the euro-zone economy: Higher and more volatile inflation, which will reduce the purchasing power of households, especially the poorest; A need for very large additional investments with relatively low financial returns. The ECB has announced that a loss of household purchasing power due to rising energy prices would make it impossible to conduct a more restrictive monetary policy . It is also likely that it wants to facilitate investments in the energy transition, which requires that interest rates remain very low. The energy transition is therefore a major obstacle to a rise in interest rates in the euro zone.