The European Central Bank may end eight years of negative interest rates at the end of 2022 or the beginning of 2023 in its first step to tackle the jump in inflation to record levels, says the member of the Board. of the bank, Bostjan Vasle.
With Russia’s war in Ukraine leading to a new jump in prices and wages showing signs of further strengthening, officials should be “very careful” to take action before further upward pressure begins, the head of state said. Central Bank of Slovenia, as reported by Bloomberg.
Agreed in line with a proposal by the President of the Central Bank of the Netherlands, Klaas Knot, the net asset purchases, which are scheduled to be completed in the third quarter, to stop even in July,
“The most important thing for me is to start this process not too late this year and to have the opportunity to get out of the negative ground by the turn of the year,” Vasle said.
“We continue to expect quite strong growth rates and if this scenario materializes, I see no reason why we should not continue with the normalization of policy after the change of the year and go above zero in interest rates,” he added.
Source: Capital
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