Lagarde expects the ECB to raise interest rates in July

European Central Bank President Christine Lagarde expected the bank to make its first rate hike in more than a decade in July, but she played down the notion of a 50 basis point (5.0%) increase amid concerns regarding broadening activity. Economic.

And in light of the growing reliance on the bank’s board of governors pushing to raise interest rates during the summer, the increase is expected to come “weeks” following the end of the net purchase of bonds early in the next quarter, according to Bloomberg News Agency, on Saturday. with bank guidelines.

“We’ll take the net asset purchases off course…and then, sometime later – maybe a few weeks later – interest rates are raised,” Lagarde said.

Bloomberg indicated the growing concern among European Central Bank officials regarding record inflation rates, focusing on the risks related to price escalation once morest the backdrop of fears of the repercussions of the Russian invasion of Ukraine and the renewed problems of supply chain disruptions, which will derail the recovery from the Corona pandemic.