Lagarde says ECB likely to abandon negative rates in September
Central bank would need to confirm end to asset purchases in June, and hike in July and September
The European Central Bank president Christine Lagarde signalled today (May 23) the central bank is likely to abandon negative interest rates in September.
The deposit rate has been at -0.5% since September 2019, and below 0% since June 2014. Over the previous decade, the ECB has combined rates at the zero lower bound with a set of asset purchase programmes in a bid to boost below-target inflation.
However, a set of supply and demand shocks unleashed by the pandemic, reinforced since February
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