The European Central Bank will continue raising interest rates until inflation falls back to its 2% target, Bank President Christine Lagarde said in an interview with Germany’s Funke Mediengruppe published today, Friday.
As Reuters comments, it is Ms Lagarde’s strongest commitment to date to fight inflation, which reached 8.6% in the euro zone last month, despite growing fears of a recession.
“We will raise interest rates as long as necessary to bring inflation back to our target,” the ECB chief told the German newspaper group.
It is recalled that yesterday the ECB raised its interest rates for the first time after 11 years, choosing the most aggressive path of 50 basis points (0.5%), while the market estimated that the milder 25 bps would prevail.
Source: Capital
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