ECB President Lagarde: It is good practise to start with incremental rate increase

Joel Frank Independent Analyst

When questioned on why the European Central Bank (ECB) has signalled its intention to raise interest rates by 25 bps in July and not by 50, President Christine Lagarde said that it is good practise to start an interest rate hiking cycle with an incremental increase that is sizeable, but not excessive, as per a tweet by Bloomberg's Jonathon Ferro.

"we are now on our path to exit negative interest rates soon... it is good practice... to start with an incremental increase that is sizeable and not excessive... we also want to observe how markets will operate"

Pres Lagarde on why they will hike 25bp in July and not 50bp
— Jonathan Ferro (@FerroTV) June 9, 2022

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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