The chief economist of the European Central Bank, Philip Lane, has indicated that interest rates in the euro area will go up by 0.25% in July and by the same amount again in September.

"Normalisation has a natural focus on moving in units of 25 basis points, so increases of 25 basis points in the July and September meetings are a benchmark pace," Philip Lane said.

He made his comments in an interview with Spanish newspaper Cinco Días, a transcript of which has been published today on the ECB's website.

Professor Lane went on to say that the ECB’s current assessment is for inflation to be in line with its 2% target in the medium term.

He reiterated a statement made by the President of the ECB, Christine Lagarde, that euro area rates would be in positive territory by the end of the third quarter of this year, which is the end of September.

Deposit rates at the ECB currently stand at -0.5%.

The ECB will hold its next Governing Council meeting on June 9.

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