According to Christine Lagarde, president of the European Central Bank, raising interest rates to a limited level of inflation to the desired rate of 2% may be necessary.
In a speech on Friday in the city of Estonia, Tallinn, Lagarde added that the European Central Bank would need to reach a point where interest rates constitute brakes after raising them by two percentage points in three months.
In the eurozone, Estonia is now seeing the worst increase in consumer prices, which topped 25%.
Despite an impending economic slowdown and certain central banks reducing the increase in interest rates, officials at the European Central Bank still believe that fighting inflation is necessary.
Lagarde warned Thursday of the possibility of “moderate stagnation”.
Author: DBA.
European Central: It is necessary to increase interest rates to a cap.
About Author
