Lagarde: European Central Bank has to ease inflation
(MENAFN) The European Central Bank (ECB) has to carry on increasing interest rates to ease inflation, even if the side effect of tight financial policy is weaker expansion, the bank’s chief made a statement on Wednesday.
The ECB has to deliver on its main goal of price steadiness, Christine Lagarde declared at an event held in Frankfurt.
“We will do what we have to do, which is to continue hiking interest rates in the next several meetings,” she added.
“Our primary goal is not to create a recession. Our primary objective is price stability and we have to deliver on that. If we were not delivering, it would hurt the economy far more.”
Amid the energy crisis caused by the Ukraine conflict, yearly inflation in the euro area rose to 9.1 percent during last month, while consumer confidence saw its lowest level on record this month.
“Roughly 18 months ago, I’m sure that very few of you in this room remember where inflation was. It was in negative territory. Now we are at plus 9.1 percent” on the words of Lagarde.
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