ECB may raise deposit rate to start interest rate hike, Nowotny says

ECB may raise deposit rate to start interest rate hike, Nowotny says

By Marc JonesLONDRES (Reuters) - The European Central Bank (ECB) could stagger eurozone interest rate hikes by raising its deposit rate, which is below ...

By Marc JonesLONDON (Reuters) - The European Central Bank (ECB) could stagger eurozone interest rate hikes by raising its below-zero deposit rate into positive territory, a statement said on Tuesday. of its oldest members, Ewald Nowotny.Nowotny told Reuters in an interview that the ECB's 2.55 trillion euro bond buying program will be closed by the end of this year, which will pave the way for the first interest rate hike since 2011.He urged the ECB to go ahead with the process to ensure that it can take a gradual approach, and to start with the deposit rate, which has been in negative territory since mid-2014."I would have no problem moving from -0.4 percent to -0.2 percent as a first step and then, as a second step, include the (main) (refinancing) interest rate," he said."This is the structure. The exact time? It's too early to tell," Nowotny said.The ECB is expected to present in June or July how it intends to reduce the stimulus program it has been using to sustain the...


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