The President of the European Central Bank, cristina lagardereaffirmed this Monday the intention of the monetary policy maker to continue increasing interest rates “at a steady pace“to curb high inflation in the euro zone.
“ECB interest rates should continue significantly increasing a sustained pace to reach sufficiently restrictive levels” and “It will stay that way for as long as necessary.“, said the French economist during a reception of the operator of the Frankfurt Stock Exchange.
Lagarde called European inflation “very high” and said the central bank would stay the course
It should be remembered that the Central European interest rates reduced by 2.50 percentage points in less than six months, the fastest increase in its history.
“We have to reduce inflation” and “we will reach this goal“Lagarde emphasized. At the moment, inflation in Europe”too high“, declared Lagarde quoted by AFP.
European Central Bank member called for gradual interest rate hikes
The launch of Russia’s military operation in Ukraine”brought inflation to the euro zone to extraordinary levels“and possibly a general increase in prices of more than 10% in October.
If the energy investment is consumed in the last months, underlying inflationwithout energy and food prices, keeps increasing.
“Therefore, it is vital that inflation rates above the ECB’s 2% target are notor take root in the economy“, concluded Lagarde. The ECB will increase interest rates again in February and according to Lagarde’s words, probably in the coming months.
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