The president of the European Central Bank has assured that inflation will return to 2% “in the medium term”.
Euskaraz irakurri: Lagardek esan du interes-tasak behar adina igoko direla inflazioa % 2ra itzultzeko
European Central Bank President Christine Lagarde said on Saturday that interest rates will rise as much as it takes to bring inflation down to 2%.
“We are sending a clear message to companies, employees and investors: inflation will return to our target of 2% in the medium term,” he said in an op-ed for German conglomerate Funke Mediengruppe.
The measures taken so far are already having an impact on interest rates across the euro area, Lagarde said.
The comments, picked up by Bloomberg, come a day after the ECB raised interest rates more than expected after eight years to combat inflation which reached 8.6% in June and will continue to accelerate.
According to Lagarde, prices are rising largely due to factors beyond the control of central bankers. But the ECB’s measures were designed to ensure that inflation “does not remain permanently high”, which could happen if a spiral of wages and prices were to develop, the president said.
The new tool to contain market turmoil that the ECB presented on Thursday “will maintain the coherence of our monetary policy and help keep prices stable over the medium term,” he concluded.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
