ECB hints at possible 50bp hike in September

At a press conference, ECB President Christine Lagarde said that a rate rise above 25bp could happen in September if the inflation outlook does not improve.

Lagarde said the ECB intends to raise interest rates by 25bp in July and probably by 25bp in September as well. A rate rise of 50bp in September is possible, “if the medium-term inflation outlook persists or deteriorates. Beyond that, ”a gradual but sustained path of further increases in interest rates will be appropriate”.

The ECB also confirmed that net asset purchases will end on 1 July.