In a recent statement, Christine Lagarde, the President of the European Central Bank (ECB), emphasized the ongoing battle against rising inflation. Despite progress in many areas, Lagarde stated that the fight against inflation is far from over. She highlighted the need for vigilance, commitment, and tenacity in navigating the path of moderate interest rate cuts.
Lagarde also stressed that while progress is being made, there is still a long way to go before inflation is under control. The ECB’s decision to lower interest rates reflects their continued efforts to maintain price stability and support economic recovery in the eurozone.
The ECB recently lowered its key policy rate by 0.25 percentage points, with expectations of further reductions in the coming year. Despite concerns about a possible excessive increase in prices, the ECB’s target rate for price increase remains at two percent. This has prompted questions from those advocating for tighter monetary policy, especially as the ECB raised its inflation forecast for next year to 2.5 percent.
Lagarde stated that interest rates will need to be kept at a high level until price stability is achieved, indicating that the central bank is prepared to continue lowering interest rates gradually to reach this goal. She emphasized that despite progress in many areas, the fight against inflation is far from over and requires constant vigilance and commitment from all stakeholders involved.
