Lagarde Says ECB Hike May Follow ‘Weeks’ After Bond-Buying Ends
Bloomberg
Published May 11, 2022 04:11AM ET
Updated May 11, 2022 04:27AM ET
Lagarde Says ECB Hike May Follow ‘Weeks’ After Bond-Buying Ends
(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
European Central Bank President Christine Lagarde said a first interest-rate increase in more than a decade may follow “weeks” after policy makers conclude net bond-buying, likely next quarter.
“The first rate hike, informed by the ECB’s forward guidance on the interest rates, will take place some time after the end of net asset purchases,” Lagarde said Wednesday. “We have not yet precisely defined the notion of ‘some time,’ but I have been very clear that this could mean a period of only a few weeks.”
After the initial hike, policy normalization “will be gradual,” she said in a speech in Ljubljana, Slovenia.
Faced with inflation at almost four times the ECB’s 2% goal, Lagarde’s ECB colleagues are increasingly pushing for a hike as soon as July. While the Federal Reserve and the Bank of England are well under way with tightening monetary policy, the ECB hasn’t raised borrowing costs since 2011 and its deposit rate has been negative since 2014.
©2022 Bloomberg L.P.
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.