Traders are expecting the European Central Bank (ECB) to increase interest rates

Traders noted that the European Central Bank (ECB) is expected to increase interest rates within 3 months due to the increase in global inflation. Members of the European Central Bank (ECB) Governing Council of Traders made statements stating that the record low deposit interest rate of minus 0.5 percent could increase as of the third quarter. Policy makers noted that they were worried that inflation, which was almost 4 times higher than the 2 percent target, would get out of control even more. "Judging by the hawkish comments from the ECB this week, a rate hike in July is a realistic option," said Danske Bank Senior Strategist Piet Christiansen. Traders who did not expect a rate hike from the bank at the beginning of the year noted that a total of 3 rate hikes are expected by the end of the year.