European Central Bank (ECB) President Christine Lagarde confirmed this Wednesday the institution’s intention to raise interest rates again. another 50 basis points He claimed that “the path to be followed” will be evaluated after this increase in order to reduce inflation to its target of 2% in the medium term in the next March.
This is the economic prospects”more balancedThe ECB will continue its strategy of maintaining “restrictive” interest rates, as this will avoid the risk of an upside change in the inflation outlook.
While this rise will push the price of the coin to 3.5%, Lagarde argued that future decisions will depend on the data and will continue. “one guide per meeting”.
To justify his intentions, the ECB chief stated that inflation was 8.8%, which is “it will probably be revised soonconsidering German data not included in the latest estimates”.
Energy prices have also fallen, but the previous rise continues to be felt in consumer prices, and therefore core inflation remains very high. inflation is around 5.5%As in December”.
Lagarde encouraged progress in the next 12 months, before the next European elections, because There is “a lot left” to do in three areas: Financial integration of the eurozone, fiscal rules and digital Europe.
These are three “large-scale” projects where progress is needed to strengthen financial integration while guaranteeing ECB banking supervision. “efficient and consistent.”
“More needs to be done, especially if we want capital to flow and meet our needs. ambitious green and digital transition goalsWithout forgetting the efforts to complete the Banks Union”, it affected.
In that sense, he urged legislators to reach an agreement “soon” to review fiscal rules, which offers more. “simple and predictable” and with greater participation of Member States to strengthen the basis of economic and monetary union.