The president of the European Central Bank, Christine Lagarde, left open on Wednesday the possibility of an increase in the guiding interest rates of the institution during the summer, if inflation remains at a high level.
“The ECB’s mission is price stability,” Ms. Lagarde of Hamburg said yesterday, where she met with Mayor Peter Chancher.
Inflation in the eurozone reached 7.5% on an annual basis in March, a record level, well above the bank’s medium-term target of 2%, which puts pressure on the institution to take steps to de-escalate monetary policy. relaxation after years.
The “journey” of monetary normalization should have already begun, according to Ms. Lagarde.
Following the end of the emergency program to support the economy during the new coronavirus crisis in March, another debt-buying program, older, is expected to end in turn: “We will stop buying assets possibly at the beginning of the third quarter, probably in June “.
The decision will be taken by the Executive Board on the basis of the financial data that will be available at its meeting in June.
“Then it will be time to look at interest rates,” he added.
If the reference rate hike – the first since 2011 – is to follow the end of the securities market very quickly, the current timetable allows a decision to be taken at the last monetary policy meeting before its summer break on 21 July. .
According to the ECB, interest rates will rise “shortly after” the end of debt markets.
SOURCE: AMPE
Source: Capital
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