Frankfurt The European Central Bank is targeting the first rate hike in the euro area in more than ten years for July. According to statements made by many central bank representatives, this is becoming more and more evident.
Savers have been waiting for this step for years. The ECB last raised interest rates in 2011. The key deposit rate is currently minus 0.5 percent. This means that banks that hold excess liquidity with the central bank pay negative interest.
The reason for the imminent turnaround in interest rates is high inflation. It reached 7.5 percent in the euro area in April. The high price pressure is putting pressure on the ECB.
A number of central bank representatives have therefore spoken out in favor of an early interest rate hike in the past few weeks. Including those who are considered “doves”, i.e. advocates of a particularly loose monetary policy.
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This has changed the majority in the Governing Council, which is made up of the Executive Board and the heads of the national central banks.
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