ECB May Raise Interest Rates Before Ending QE

The European Central Bank will decide at a later time whether to raise interest rates before or after ending its bond purchase program, ECB policymaker Ewald Nowotny told a newspaper on Thursday.

The Austrian central bank governor said the ECB could hike its remuneration of bank deposits, currently below zero, before the main rates at which it lends to banks.

His comments raise questions about the ECB’s own guidance, reiterated only a week ago, that rates will stay at the current level, or even fall, until well after the ECB’s 2.3 trillion euros ($2.48 trillion) bond-purchase program ends.

Reuters

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