Euro zone to end negative interest rates within months, Lagarde indicates via IrishTimesBiz
has signalled for the first time that the European Central Bank’s eight-year experiment with negative rates will end within months, saying borrowing costs are on track to hit zero by the end of September.
Ms Lagarde wrote: “If we see inflation stabilising at 2 per cent over the medium term, a progressive further normalisation of interest rates towards the neutral rate will be appropriate.” Ms Lagarde’s comments sent the euro up 1.1 per cent against the dollar to $1.0684. The euro has fallen more than 12 per cent against the dollar in the past year. Highlighting the impact of the weaker currency, Ms Lagarde said higher import prices had cost the euro zone €170 billion, or 1.3 per cent of gross domestic product, in the year to March.
After inflation soared to a euro zone record of 7.4 per cent in April, far above the ECB’s 2 per cent target, a growing number of its governing council members have have signalled the first rise in its deposit rate for a decade is likely at its meeting on July 21.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Government should consider tax on vacant homes, says Oireachtas committeeZoned land tax should be raised beyond planned 3% rate, new report to recommend
Read more »
‘Don’t waste what might be the final opportunity to lock in a low mortgage interest rate’ECB on the verge of raising interest rates and no-one knows how high they will go via IrishTimesBiz
Read more »
ECB likely to get out of negative rates by SeptemberThe European Central Bank is likely to lift its deposit rate out of negative territory by the end of September and could raise it further if it sees inflation stabilising at 2%, ECB President Christine Lagarde said today.
Read more »
Prospect of rate hikes impacting national debt tooAs the European Central Bank readies to hike interest rates, the cost of longer term borrowing is starting to rise. That applies to our national debt where the cost of borrowing over 10 years has doubled in recent months. Bond yields are likely to continue to move upwards as ECB rates rise.
Read more »
Council removes Maureen O’Hara statue at sculptor’s request following criticismInstallation taken down in Glengarriff, west Cork within 48 hours
Read more »