ECB, Lagarde: “rates still have to rise significantly”

ECB President Christine Lagarde returns to clarify the line to fight inflation by speaking at the annual reception of the Deutsche Börse in Eschborn

“In less than six months, we raised ECB interest rates by 250 basis points, the fastest increase in our history. And we made it clear that ECB interest rates still need to rise significantly at a steady pace to reach sufficiently restrictive levels and stay at those levels for as long as necessary. In other words, we will stay on course to ensure the timely return of inflation to our target.” This was stated by the president of the ECB, Christine Lagarde speaking at the annual reception of the Deutsche Börse in Eschborn.

Inflation in Europe, notes the ECB president, “is too high, partly due to our vulnerability to changing energy geopolitics. The decoupling from Russia last year pushed energy inflation in the euro at extraordinary levels.But while energy inflation has recently declined, core inflation continues to rise.As a result, it is crucial that inflation rates above the ECB’s 2% target do not become entrenched in the economy. We need to reduce inflation. And we will achieve this goal.”