The president of the European Central Bank, Christine Lagarde, left open on Wednesday the possibility of an increase in the guiding interest rates of the institution during the summer, if inflation remains at a high level.
“The ECB’s mission is price stability,” Ms. Lagarde of Hamburg said yesterday, where she met with Mayor Peter Chancher.
Inflation in eurozone reached 7.5% on an annual basis in March, a record level, well above the 2% target which is its medium-term target. bankwhich puts pressure on the institution to take steps to de-escalate monetary easing policy after years.
The “journey” of monetary normalization should have already begun, according to Ms. Lagarde.
Following the end of the emergency financial support program during the coronavirus crisis in March, another purchase program debt, older, is expected to end in turn: “we will stop buying assets probably at the beginning of the third quarter, probably in June.”
The decision will be taken by the Executive Board on the basis of the financial data that will be available at its meeting in June.
“Then it will be time to look at interest rates,” he added.
If the rise in benchmark interest rates – the first since 2011 – is to follow the end of the bond market very quickly, the current timetable allows a decision to be taken at the last monetary policy meeting before its summer break on July 21. .
According to the ECB, interest rates will rise “shortly after” the end of debt markets.
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