ROME, MAY 23 – The ECB is preparing to raise rates “at the July meeting” in order to “be able to get out of negative interest rates by the end of the third quarter”. This was stated by the president of the central institute Christine Lagarde in a post published in the ECB blod according to which the normalization policy “will be gradual”. Net purchases of the App program on public and private securities “will end at the beginning of the third quarter”. Lagarde’s words therefore indicate two rate hikes: at the July meeting and at the September meeting after the summer break. Currently the ECB and deposit rate is -0.5%. The president of the ECB insisted in the article about her how each move will be guided by three key concepts: gradualness, optionality, flexibility. (HANDLE).
(HANDLE)
