Visco (ECB) in favor of a gradual increase in rates

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KÖNIGSWINTER, Germany (Reuters) – The European Central Bank (ECB) must raise its deposit rate, currently set at -0.5%, “more gradually” than some officials suggested, member Ignazio Visco said on Friday. of the Frankfurt Institution and Governor of the Bank of Italy.

Questioned during a meeting of finance ministers and central bank governors of the G7 in Germany, Ignazio Visco reacted to the remarks of the president of the central bank of the Netherlands, Klaas Knot, who estimated on Tuesday that an increase in interest rates of half a point in July was possible if inflation continued to pick up.

Money markets are banking on Friday at 50% on a 50 basis point rise in ECB rates in July, while inflation came out in April at 7.4% over one year, a record level, far from the 2% target set by the European Central Bank.

(Report Francesco Canepa; French version Claude Chendjou, edited by Jean-Michel Bélot)

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