Poll: ECB to hike deposit rate by 25 bps in July

Rising costs: A man takes a picture of the ECB in Frankfurt. With inflation hitting a multi-decade high of 7.5% in April and almost every other major central bank having already raised rates, president Christine Lagarde has backed calls for an early rate hike. — AP

FRANKFURT: The European Central Bank (ECB) is expected to raise the deposit rate for the first time in over a decade in July and bring it out of negative territory at its following meeting in September, despite a 30% chance of recession within a year, a Reuters poll of economists showed.

With inflation hitting a multi-decade high of 7.5% in April and almost every other major central bank having already raised interest rates, ECB president Christine Lagarde backed calls for an early rate hike by policymakers last week.