European Central Bank (ECB) President Christine Lagarde this Wednesday expressed confidence that the process of reducing inflation is not over, but that it will return to normal. 2% target On time.
“We are not finished,” the head of the European broadcasting institute summarized in an interview with Greek media Antenna TV. Lagarde reiterated her commitment to medium-term control of the institution she heads. price stability This is a “mission” of the ECB.
“We have to monitor prices and wages, as well as profits, etc., to determine where the risks are,” he explained. “But for now I am confident that we are in the process of bringing inflation back to 2%,” he said.
Therefore, ahead of tomorrow’s meeting to maintain or increase interest rates, Lagarde stated from Athens that those responsible for monetary policy should “pay close attention” to interest rates. Potential risks to financial stability, Including a possible escalation of the war between Israel and Hamas that has been raging since October 7.
In this sense, the former French Minister of Economy stated the following on the ‘ERT TV’ channel: Impact of instability in the Middle East Since this region is an important oil producer and transit area, it has an impact on energy prices. This “directly or indirectly” affects overall confidence in the economy.
Lagarde reminded that the energy surge was already the “main driver” of inflation in 2022, with its resulting costs in terms of activity and families, but in this case the trigger was Russia’s invasion of Ukraine.