FRANKFURT — The European Central Bank is likely to raise its key interest rate, which is currently negative, to zero by September and could continue to raise interest rates thereafter, President Christine Lagarde he said, marking the end of the ECB’s eight-year experiment with negative interest rates amid record inflation and concerns about the weakness of the euro.
The policy change, outlined in an ECB blog post on Monday, follows strong moves by the US Federal Reserve and other major central banks to phase out easy-going monetary policies as inflation rises around the world. It is part of a sharp turn in the eurozone central bank, which until recently signaled that it would raise interest rates only gradually, deviating from the Fed.
Lagarde marks the end of the ECB’s negative interest rate experiment
Source link Lagarde marks the end of the ECB’s negative interest rate experiment