The ECB Will Increase Interest Rates Until Inflation Reaches its 2 Percent Objective Again.

Christine Lagarde, president of the European Central Bank, made these comments in an interview with the Funke Mediengruppe, which was published on Friday. Until inflation returns to its 2 percent target, the ECB will boost interest rates.

July 25, 2022 - 12:16 PM 304 views

The ECB Will Increase Interest Rates Until Inflation Reaches its 2 Percent Objective Again.

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© The ECB Will Increase Interest Rates Until Inflation Reaches its 2 Percent Objective Again.

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Christine Lagarde, president of the European Central Bank, made these comments in an interview with the Funke Mediengruppe, which was published on Friday. Until inflation returns to its 2 percent target, the ECB will boost interest rates.

The rate increase is merely the most recent stage in our process of ending the special measures.

As long as it takes to reduce inflation to our objective over the medium term, we will maintain raising rates.

Depending on the information received, the governing council will evaluate the situation and choose the appropriate pace for our next measures.

Robert Holzmann, an ECB hawk, has added the following remarks:

·         “Forecasts indicate that the economy would grow less rapidly, which has caused us to be rather cautious.”

·         "The state of the economy will be revealed in the autumn. We will then be able to determine if we want to add another 0.5 percent "r less."

·         “The ECB is anxious to avoid public perceptions of increased inflation expectations becoming entrenched.”

In the meantime, the supply from the previous three weeks has been corrected by the euro bulls, who entered from below parity.

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