Christine Lagarde, President of the European Central Bank (ECB), announced new interest rate hikes on Wednesday. upcoming council meetings business to deal with inflation.
“We need to push inflation to 2 percent in the medium term and we will do what we have to do. So go ahead. raise interest at later meetings,” Lagarde said at an event in Frankfurt.
According to Lagarde, if the ECB does not choose this path the consequences for the economy would be more serious more than credit growth.
“Our aim is not to reduce growth, our main goal is to achieve price stability. This is something you should get ECB“, aforementioned.
The ECB raised interest rates last July. for the first time since 2011. On this occasion, the reference interest rate rose by half a point to 0.5%.
In its second step, there was a 0.75 percentage point increase in September and the reference interest rate is now 1.25%. In August, inflation in the euro area reached 9.1%. The ECB considers that price stability will be guaranteed if: Annual inflation is just under 2%.
Before the move in July, the ECB had followed for years. low interest policy first to face the consequences of the debt crisis, then the economic repercussions of the pandemic.
The next meeting of the ECB council is scheduled. October 27.