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European Central Bank rate hike can come as soon as July, says Lagarde

The ECB should end its stimulus bond-buying scheme "early in the third quarter", Lagarde said in a speech in Ljubljana

European Central Bank | Europe | Christine Lagarde


European Central Bank (ECB) President Christine Lagarde (Photo: Reuters)
European Central Bank (ECB) President Christine Lagarde (Photo: Reuters)

president hinted Wednesday the Frankfurt-based institution could raise its interest rates from historic lows as soon as July as in the soars.

The ECB should end its stimulus bond-buying scheme “early in the third quarter”, Lagarde said in a speech in Ljubljana, and could then raise interest rates “only a few weeks” later.

The comment is the clearest sign yet from Lagarde that the ECB is ready to move on rates soon rather later, as the institution trails behind the US Federal Reserve and other major central banks that have already taken the step to combat .

ECB policymakers will next meet on June 9 and July 21 to decide their course of action.

Any hike would be the ECB's first in over a decade and would lift rates from their current historically low levels. These include a negative deposit rate which effectively charges banks to park their excess cash at the ECB overnight.

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First Published: Wed, May 11 2022. 23:33 IST