European central bank governor Christine Lagarde said yesterday that it is likely to raise rates by the end of the year.
The Central Bank of Europe, which was previously more cautious about tightening monetary policy than the United States, is now under pressure to respond to record inflation.
European central bank governor Christine Lagarde, who is visiting Washington, appeared on CNBC TV on the 22nd, stating that future monetary policy "if the current situation continues, it is possible that interest rates will be raised by the end of the year. It ’s expensive. ”
The Central Bank of Europe was previously cautious about tightening monetary policy, but decided to move ahead with the reduction of quantitative easing as inflation in the region reached record levels.
Quantitative easing is expected to end between July and September, after which full-scale consideration of rate hikes is expected.
Among the world's major central banks, the Fed in the United States and the Bank of England in the United Kingdom have already taken the lead in raising interest rates, and the move to tighten monetary policy is expected to spread further.
On the other hand, the Bank of Japan has indicated a policy of maintaining large-scale monetary easing measures, and the difference in policy direction has led to a rapid depreciation of the yen in the foreign exchange market.