While the European Central Bank keeps raising interest rates quickly, President Christine Lagarde stated that the recession that is looming over the euro area will not be enough to control prices.
During a forum organized by Lithuania Bank in Riga, Lagarde announced that the “modest stagnation” scenario in the euro area is possible in early 2023, but “we do not believe that this recession will be sufficient to curb inflation.
“The European Central Bank has increased interest rates by a total of 2% since last July, when they were at a historically low level. He plans to keep raising them in order to bring inflation back to its target of 2%, which is currently higher than 10%.
The “US Central” hiked interest rates on Wednesday to their highest level in over 15 years, and it wants to continue raising them. At the same time, the “European Central” warned of the hazards connected with the quick rise in interest rates.
The former head of the International Monetary Fund, Christine Lagarde, remarked, “We must look out for one another and be vigilant from the decrease and the prospective rise in the interest rates movement.” She said, “I think the Federal Reserve also realises that.”
Author: “AFP.”
A probable recession won’t be enough to stop inflation in the euro region, according to “European Central.”
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