ECB 'very unlikely' to raise interest rates in 2022

Inflation outlook remains subdued

The European Central Bank is "very unlikely" to raise interest rates next year, according to ECB president Christine Lagarde, countering widespread market predictions which saw the event as soon as October 2022.

Speaking during an event in Lisbon, Lagarde referred to the bank's forward guidance, which details "three conditions that need to be satisfied before rates will start to rise". "Despite the current inflation surge, the outlook for inflation over the medium term remains subdued, and thus these three conditions are very unlikely to be satisfied next year," she added. The comments from the bank's president come following her recent failure to refute market expectations of rate hikes during 2022. Lagarde explained that market interest rates have risen over the past weeks as a result of...