ECB President Christine Lagarde made a statement on interest rate hikes. Lagarde stated that inflation is a priority for the ECB over growth.
Christine Lagarde, President of the European Central Bank (ECB), stated that interest rate hikes will continue in the upcoming meetings. Lagarde stated that inflation is a priority for the ECB over growth.
According to Bloomberg’s report, ECB President Lagarde reiterated his statement in Frankfurt that interest rate hikes will continue in the next few meetings until inflation reaches the 2 percent target in the medium term.
Stating that price stability is the priority of the ECB, Lagarde said, “We will do whatever is necessary. This means that interest rates will increase in a few more meetings. Our goal is not to cause a recession, but our first priority is price stability. Failure to ensure price stability will cause more damage to the economy.” Lagarde stated that energy prices are the most important factor fueling inflation in Europe.
Lagarde stated that a neutral interest rate has not yet been reached.
The ECB continues to increase interest rates, following the Fed to rein in high inflation. Consumer Confidence in the Euro Zone is at a record low. Slovakia’s Central Bank Governor Peter Kazamir said today that the economy performed well in the first half of 2022, but next year will be tougher.