Lagarde, from the ECB, talks about “new challenges in a changing world”: Inflation too high in Europe

The European Central Bank (ECB) will continue to raise interest rates rapidly to curb inflation that remains too high, he declared on Monday ECB President Christine Lagarderepeating to a great extent the most recent orientations of the institution.

“We have made it clear that ECB interest rates will have to continue to rise significantly at a steady pace to reach levels that are sufficiently restrictive, and remain at those levels for as long as necessary,” Lagarde said in a speech.

“In other words, we will stay the course to ensure the timely return of inflation to our target,” he added.

Still, the ECB’s Laragre says inflation is too high and the euro is recovering after the speech.

Featured Statements

Inflation in Europe is too high, we must reduce it.
The ECB has made it clear that interest rates will have to continue to rise at a steady pace.
The ECB will stay the course to ensure a timely return to the inflation target.

More to come…

EUR/USD Update

The EUR/USD has found support in comments from European Central Bank officials this week, as they are signaling further interest rate hikes in Europe. At time of writing, EUR/USD is rising on Lagard’s comments and has rallied from a low of 1.0845 to a high of 1.0926.