Helsinki, May 5 (BRENCE LATINA) The European Central Bank (ECB) may launch the first increase in bank deposit rates in the eurozone until next July, a member of the organization’s governing body said today.
According to Olli Rehn, the current governor of the Bank of Finland, the ECB should raise its interest rates by 0.25 percentage points to zero in the fall.
In an interview with the Finnish daily Helsing’s Sanomate, he tightened monetary policy, saying the rate was currently -0.50 per cent and “there is no need to delay”.
After that, the Finnish official who served as the EU Commissioner for Economic and Monetary Affairs said, “We can gradually and dynamically streamline monetary policy.”
In his view, inflation forecasts in the euro zone are very different from those in the US, where the Federal Reserve raised its benchmark rate to 0.5 percentage points overnight on Wednesday.
The ECB’s governing body will meet again on June 9 to discuss its monetary policy, during which it will release its macroeconomic forecasts. Then, they will meet again on July 21st.
Following the recent statements of Christine Lagarde, president of the banking system, and Louis de Kindos, vice president of the banking system, voices of support have been raised in the governing body over the possibility of making this change in monetary policy effective.
Inflation in the eurozone rose to 7.5 percent year-on-year in April, according to data from the European Statistics Office.
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