The president of the European Central Bank: “The likelihood of a recession has increased and uncertainty remains high”
“Inflation is still too high in the euro area as a whole. Rising energy and food prices are still the main driver of rising prices. We are seeing more and more that these higher energy costs are spreading to more and more sectors of the economy. With that in mind, we decided on a new interest rate hike last week. And we expect to raise interest rates further to ensure that inflation returns to our medium-term target of 2% in a timely manner. “This was stated in ‘Delphi’ by the ECB president, Christine Lagarde.
“It is true that the likelihood of a recession has increased and uncertainty remains high – he said again – In these circumstances, we all have to do our job. A central bank must focus on its mandate. Our mandate is price stability and we must achieve this by using all the tools we have at our disposal, choosing those that will be most appropriate and efficient. “” Ultimately, constantly high inflation rates are more damaging to society because they make everyone poorer. . Stable prices provide the foundation for a well-functioning economy where everyone benefits, “he said again.