Extent. Christine Lagarde, president of the European Central Bank, asserted that the objective is to reduce inflation levels.
The President of the European Central Bank (ECB), christine lagarde, insisted that they are going to raise interest rates. Lagarde told the annual reception for Deutsche Börse, manager of the Frankfurt Stock Exchange, that interest rates still need to “raise significantly at a sustained pace until they reach sufficiently restrictive levels and stay at those levels for as long as necessary.”
“A major challenge facing Europe is the environment of high inflation”, according to the ECB president.
The official also explained that the inflation in Europe it is too high, in part, due to vulnerability to the changing geopolitics of energy. So disengaging from Russia last year pushed eurozone energy inflation up to “extraordinary” levels.
He also highlighted that while energy inflation is low, core inflation continues to rise. Given this scenario, it is vital that inflation rates above the ECB’s target of 2% do not become entrenched in the economy.
“We must lower inflation and we will meet this objective,” added the ECB president.
He also recalled that, in less than half a year, the ECB it has raised its key interest rates by 250 basis points, the fastest rate increase in the ECB’s history.
Source: Larepublica
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