ECB Boss Hints at Possible Interest Rate Hike Next Summer

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The European Central Bank (ECB) is expected to raise interest rates in July. ECB president Christine Lagarde hinted at a first interest rate hike next summer.

 

During a meeting in Slovenia’s Ljubljana, Lagarde said that the central bank should stop buying bonds “early in the third quarter”.

The ECB tried to support the eurozone economy during the corona crisis by buying bonds. A few weeks after that, the interest could be raised. The next ECB meetings are on 9 June and 21 July.

Central bankers are currently grappling with the effects of the war in Ukraine, which has caused prices to rise sharply and consumer and business confidence to decline.

As a result, the ECB would like the monetary policy to return to normal. Several ECB executives previously hinted at an interest rate hike in the summer.

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