“We have to prevent high inflation from becoming fixed in expectations.”
(Photo: Getty Images; Per-Anders Pettersson)
Frankfurt The European Central Bank (ECB) is expected to initiate the turnaround in interest rates in the euro area in July. “Now it’s not enough to talk, we have to act,” ECB Director Isabel Schnabel told Handelsblatt. “From today’s perspective, I think a rate hike in July is possible.”
Before that, the net purchases of bonds should be stopped, probably at the end of June. Schnabel’s statement is the clearest indication so far from the ECB board of directors of an impending interest rate hike in the euro area. The ECB last raised interest rates in 2011, but corrected this step a short time later.
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