Interest Rate Increase Message from ECB

Christine Lagarde, the President of the European Central Bank, said that they could increase interest rates in July.

Interest Rate Increase Message from ECB. After the decision of many central banks to increase interest rates to combat global inflation, eyes were turned to the European Central Bank (ECB). In a statement on the subject, ECB President Christine Lagarde stated that the ECB may exit negative interest rates by the end of the third quarter. Giving the signal that they could start interest rate hikes in July, Lagarde emphasized that the negative interest rate period is likely to end as of September. Stating that he expects net asset purchases to end at the beginning of the third quarter within the scope of the Lagarde Asset Purchase Program (APP), the ECB Chairman said, "This allows us to raise interest rates in July, as in our verbal guidance. If we look at the current outlook, it is possible to exit the negative interest rate at the end of the third quarter." Gradual Interest Rate Increase Lagarde stated that interest rate increases will be gradual in line with his previous statements. Lagarde had said in a statement in the previous weeks that the first rate hike could take place "a few weeks after the end of the asset purchase program." After ECB President Lagarde's statements, the euro rose 0.7 percent against the dollar to 1.0635.     You May Also Be Interested In: https://ieconomy.io/avrupa-merkez-bankasi-amb-uyesi-viscodan-faiz-aciklamasi/