ECB President Christine Lagarde is confident that the ECB’s policy will allow inflation to return to the target level. She stated this in an interview with the publication. La Tribune Dimanche.
According to the ECB president, they plan to reduce inflation to 2 percent and they will definitely achieve this. At the same time, it is necessary to prevent the inflation spiral. In September, the regulator raised the rate to a record high of 4.5% for the tenth consecutive year. Most ECB board members believe that maintaining this level for a while will be enough to bring inflation back to target.
According to Lagarde, the ECB’s key interest rates have reached levels that, if sustained for a long enough period, will help inflation return to target levels as quickly as possible.
The regulator’s strict policy has had a negative impact on the economy, which has barely grown this year. However, Lagarde noted that the aim is not to create a recession. He expressed moderate optimism about short-term growth prospects despite Germany’s drift.
The ECB president stated that inflation continues but is slowing down and economic growth is weakening. According to him, the IMF revised its forecasts downwards for the entire world except the USA for this reason.
ECB at the end of September raised The rate has reached a record level since the early 2000s.
former president of the ECB promise Keep the rate high.