Filenews 1 November 2022
The European Central Bank must continue to raise interest rates to curb inflation, even if the likelihood of a recession in the eurozone increases, ECB President Christine Lagarde said in an interview published on Tuesday.
"Our mandate is price stability and we must fulfil it using all the tools at our disposal," Lagarde told Latvian news agency Delfi, largely repeating last week's message. "We are determined to do whatever is necessary to bring inflation back to its 2% target."
It is noted that the ECB has raised interest rates by a total of 200 basis points in its last three meetings and markets are counting on a number of further moves that will bring interest rates close to 3% in 2023.
"The destination is clear and we are not there yet," Lagarde said without specifying where the interest rate hikes could end. "We will have further interest rate hikes in the future."
Meanwhile, inflation rose to 10.7% in October and is expected to remain above the ECB's 2% target until 2024.
"The longer inflation remains at such high levels, the greater the risk that it will spread throughout the economy," Lagarde stressed.
Source:Capital.gr
