ECB’s Makhlouf says time for Governing Council to act

DUBLIN (Reuters) – Central Bank of Ireland Governor Gabriel Makhlouf joined the chorus of European Central Bank officials on Thursday calling for the Governing Council to act to tackle inflation, though not necessarily at the same pace as the Fed. United States Federal.

The president of the ECB, Christine Lagarde, finally supported on Thursday a rise in the entity’s reference interest rates, amid expectations that it will act in July.

Most other major central banks have already raised borrowing costs, but the ECB, which has struggled with inflation too low for a decade, continues to pump money into the financial system by buying bonds.

«We have reached a point where we members of the ECB Governing Council have to act,» Makhlouf said in a speech in Dublin, according to a transcript released by the Irish Central Bank, describing current inflation rates as «worrisome.» «.

«Our target is for inflation to be 2% over the medium term, levels are now significantly above, and it is time for the Council to move to end net asset purchases under the purchase of assets next month or in July,» he added.

He did not specify when rates should rise, but said it is «realistic to expect the ECB’s first interest rate move to come shortly after net asset purchases end and rates are likely to be in positive territory by now.» early next year.»

«The era of negative rates is coming to an end,» he said, saying actions that demonstrate the ECB’s commitment to price stability «will be critical to anchoring inflation expectations.»

«The balance of the advantage has tipped decisively towards the need for further action, although not necessarily at a similar pace as other central banks have also changed their stance, such as the Federal Reserve,» he said.

(Written by Conor Humphries; edited in Spanish by Carlos Serrano)