President of the European Central Bank (ECB), Christine Lagarde, He warned the European Union (EU) Heads of State and Government: “It’s too early to declare victoryHe called for new fiscal rules to be agreed this year as a “sign of unity” “despite the downward trend in inflation”.
Lagarde attended a summit of community leaders in Brussels to brief the Twenty Seven. How does the institution see the state of the European economy? and they will announce their latest monetary policy decisions aimed at stopping rising prices.
The ECB president warned leaders that “geopolitical risks overshadow the economic outlook” and that growth in Europe will remain “anemic until the end of this year” but will strengthen next year, sources with knowledge of the matter told EFE. .
Despite the inflation in a downward trend Stating that it increased from the maximum 10.6 percent reached in October 2022 to 4.3 percent in September this year, Erdoğan added that “it is too early to declare victory.”
In this context, Lagarde provided information on Thursday about the ECB Governing Council’s decision to keep interest rates unchanged and raise the governing rate to 4.5% after implementing ten consecutive increases since July 2022.
He reiterated the message that the agency is committed to this, insisting that interest rates “will remain at sufficiently restrictive levels for as long as necessary” to ensure that inflation returns “in due time” to the issuer-managed 2 percent target. has been moving in recent months.
In this “challenging international environment”, the ECB president appealed to leaders: Strengthen investments and increase efficiency in the digital and ecological transition in Europeas well as agreeing to review financial discipline rules before the end of the year.
Lagarde argued that the new framework should support both public debt sustainability and “necessary” investments in competitiveness and resilience.