This is how ECB President Lagarde explains the new rate hike in the euro area

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The ECB raised its forecasts for the development of inflation in the euro area, especially for core inflation adjusted for energy and food prices. A value of 5.1 instead of 4.6 percent is expected for this year. For 2024, the ECB assumes a value of 3.0 percent (previously 2.5 percent). For 2025, they now expect 2.3 percent after 2.2 percent in March.

Their economists are also forecasting slightly higher values ​​for overall inflation. They expect 5.4 percent this year (previously 5.3 percent), 3.0 percent in 2024 (previously 2.9 percent) and 2.2 percent in 2025 (previously 2.1 percent). In addition, the ECB is also downgrading its growth forecasts for this year and next.


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