Good news for savers: After the US Federal Reserve raised its base rate by 0.5 per cent on Tuesday, the European Central Bank may follow suit with a base rate hike in July.
According to European Central Bank (ECB) director Isabelle Schnabel, she expects the key interest rate to be raised by the European Central Bank in July. “As things stand today, I think we will be able to raise interest rates for the first time in July,” Schnabel told “Build” newspaper.
In the middle of the week, he told “Handelsblatt” that an increase would then be possible. The ECB has recently given mixed signals about the events ahead. On Thursday, Austrian National Bank chief Robert Holzmann spoke of raising rates for the first time in June.Reported T-Online,
However, other ECB officials indirectly spoke out against July or said that the process was more important than the actual timing. Given the relatively high inflation in the euro area (7.4 percent), the ECB is under pressure to follow the United States and Great Britain with interest rate hikes. The US Federal Reserve on Tuesday raised interest rates by 0.5 percent.
Experts expect 0.5 percent growth per year
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