“However, our task is not yet complete. Unless the outlook changes significantly, we will raise interest rates again in July,” says Lagarde in Sintra.
(Photo: Reuters)
Frankfurt According to its President Christine Lagarde, the ECB will not move away from its tightening course for the time being in view of the persistently high inflation. It is unlikely that the monetary authorities will be able to declare with absolute conviction in the near future that key interest rates have peaked, Lagarde said on Tuesday at the central bank forum of the European Central Bank (ECB) in Sintra, Portugal.
“For this reason, our monetary policy needs to be decided from meeting to meeting and must continue to depend on the data,” she added. The interest rate hikes implemented since July 2022 have not yet had their full effect. “However, our task is not yet complete. Unless the outlook changes significantly, we will raise interest rates again in July,” she said.
Monetary policy has only one goal, to achieve a timely return of inflation to the ECB’s medium-term two percent target, said Lagarde. “And we are determined to achieve this goal, come what may.” The ECB has already made significant progress. However, in the face of more persistent inflation, the ECB should not be hesitant. “It’s too early to give the all-clear,” Lagarde noted.
More: “ECB does not believe in its own monetary policy”