European Central Bank says it will end QE and begin raising interest rates in July

The European Central Bank on Thursday said it would end asset purchases on July 1 and raise its key interest rates next month by 25 basis points, or a quarter of a percentage point, as it vowed to bring inflation back down to its target. In a statement following a policy meeting, the ECB’s Governing Council said it expected to raise rates again in September, with the size of the move to depend on an updated medium-term inflation outlook.”If the medium-term inflation outlook persists or deteriorates, a larger increment will be appropriate at the September meeting,” the ECB said. Beyond September, the ECB said it anticipates that a “gradual but sustained path of further increases in interest rates will be appropriate.”

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