European Central Bank Likely to Exit Negative Rate Policy by End of September: Bank President

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The European Central Bank (ECB) will probably begin raising interest rates in July and exit negative territory by the end of September, said ECB President Christine Lagarde in her May 23 blog post. She said the bank could raise rates further to a neutral level if it sees inflation stabilizing at 2 percent. “If we see inflation stabilizing at 2% over the medium term, a progressive further normalization of interest rates towards the neutral rate will be appropriate,” said Lagarde. “If the euro area economy were overheating as a result of a positive demand shock, it would make sense for policy rates to be raised sequentially above the neutral rate,” she said....

Source: https://www.theepochtimes.com/european- ... 84072.html