Big interest rate hikes still in play as Lagarde’s plan wins ECB backing

ECB President Christine Lagarde.

European Central Bank (ECB) colleagues lined up to back President Christine Lagarde’s plan to exit negative interest-rate policy by the end of the third quarter, though some stressed that more aggressive action can’t be ruled out.

Following initial noises of alarm from hawkish officials earlier this week that the ECB chief’s signal for two quarter-point rate hikes in July and September seemed to exclude bigger moves, several policy makers declared support for her roadmap.