The European Central Bank (ECB) seems set to implement an interest rate hike in July for what is expected to be one of the last as its monetary tightening agenda appears to be coming to an end.
ECB President Christine Lagarde appeared to confirm an interest rate hike when the central bank’s governing council meets in Frankfurt on Thursday, explaining “we cannot waver, and we cannot declare victory yet.”
With the ECB’s rate hiking agenda nearing its conclusion, analysts are now debating whether or not the central bank will raise rates yet again in September or if July will be its last increase.
Currently, euro zone inflation is standing at 5.5; down from the double-digit peak in October but still far off the ECB’s target of 2%. The ECB’s rate hikes in the fight against inflation are the fastest since the euro was introduced in 1999. The whole euro zone economy fell slightly during the first three months of the year. Preliminary figures for the second quarter are expected on Monday.