The governor of the Irish central bank, Gabriel Makhlouf, also joined his voice with the members of the ECB who call the board. take action to tackle inflation, though not necessarily at the same pace as the US Federal Reserve.
ECB President Christine Lagarde finally spoke yesterday about raising interest rates amid expectations that she would take action in July.
Most of the other major central banks have already raised interest rates, but the ECB, which has struggled with low inflation for a decade, is still channeling cash into the financial system through bond markets.
“We have reached the point where we in the ECB’s board must act,” Makhlouf said in a speech.
“Our goal is for inflation to reach 2% in the medium term – while it is now significantly higher than this level, and it is time for the board to proceed with the completion of net asset purchases under the asset purchase program, next month or in July “, he stressed.
He did not specify when interest rates would rise, but said it was “realistic” to expect that the first ECB interest rate move would come immediately after the end of the asset market and that interest rates were likely to remain positive until early next year “.
“The era of negative interest rates is coming to an end,” he said.
“Actions that demonstrate the ECB’s commitment to price stability will be crucial in order to stabilize inflation expectations as well,” he added.