Saturday, 22 January, 2022

ECB interest rate rise ‘very unlikely’ in 2022

FRANKFURT: The European Central Bank is “very unlikely” to raise its interest rates in 2022, president Christine Lagarde said on Wednesday, amid pressure on central bankers to respond to soaring prices.

“Despite the current inflation surge, the outlook for inflation over the medium term remains subdued,” Lagarde said in a speech in Lisbon, reports AFP.

And the ECB’s conditions for a possible rate increase “are very unlikely to be satisfied next year,” she said.

Previously, the ECB has stated that it will not increase borrowing costs until it sees inflation reaching its 2.0 percent target “well ahead” ahead of a projected timeframe.