ECB likely to exit negative rates in third quarter

European Central Bank President Christine Lagarde said in a post on the central bank's website that according to the current outlook, the central bank may exit negative interest rates in the third quarter. In addition, if inflation can stabilize at 2% over the medium term, a gradual further normalization of interest rates towards neutral would be appropriate. Even the dovish President Christine Lagarde is hard to ignore in the face of the euro zone's high annual inflation rate of 7.4%. Affected by expectations that the European Central Bank may tighten monetary policy ahead of schedule, the euro exchange rate rebounded.