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00:00When you talk about first no longer negative rates. Has a market quite understood that this could mean also positive rates. Well you know when you are out of negative you can be at zero you can be slightly above zero. This is something that we will determine on the basis of of our projections on the basis of our forward guidance. I think that there are good reasons to believe that all three conditions will be satisfied in June and further on during the summer. Where are we in the third quarter. Could we be you know above zero in terms of interest rates. Is that kind of recent actresses. What I'm saying I stick to. Yeah. We will be out of negative interest rates most likely before the end of the third quarter. How do you see inflation developing from now. I mean again there's so many unknowns because of the war. You know there are lots of forces and some of them you know counteracting against each other. You have the war which in and of itself is an absolute drama. And as massive economic impacts not just in Ukraine and eventually in Russia but for the rest of the world we have energy prices which have gone up significantly and represents a big chunk of inflation. We have food prices. I mean there's a whole series of things that are weighing on growth down and pushing inflation up. But on the other side you also have forces. You know me. I tend to be a positive person and they try to look at what is likely to counteract those very significant shocks. There is unemployment which is at rock bottom rate compared with whatever we have measured in the last 20 years. We have massive savings that are still untouched. And we have you know look around. There is a summer season that is coming up in Europe in particular which is a destination of tourism. By all accounts everything is chock a block in Europe at the moment tried to book a flight try to book a hotel room. It's completely blocked and people are just catching up with what they've been missing. So services is recovering and that is going to be one of the counter force that will act.

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ECB's Lagarde: Will Be Out of Negative Rates by Third Quarter

European Central Bank President Christine Lagarde discusses the likely end of negative interest rates with Francine Lacqua at the World Economic Forum’s annual meeting on “Bloomberg Markets Europe.” (Source: Bloomberg)

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