Christine Lagarde, President of the European Central Bank (ECB), stated that they are determined to reduce inflation to the medium-term target of 2 percent, and that they plan to increase interest rates further for this.
Lagarde spoke at the “Monetary Dialogue” session of the Economic and Financial Affairs Committee of the European Parliament (EP).
Stating that the ECB has started a rapid and comprehensive process to normalize monetary policy in the last 1 year, Lagarde said, “We first ended net asset purchases in a few months. Then we started to increase our policy rates in the fastest way ever.” used the phrase.
Lagarde explained that the Russia-Ukraine war threatens energy security, disrupts supply chains and raises inflation far above its targets.
Pointing out that the repercussions of the war were felt not only in Europe but also around the world, Christine Lagarde said that this caused central banks to raise interest rates and tightened financing conditions around the world. “Europe has been hit particularly hard by this, given our proximity to war and our dependence on energy imports,” Lagarde said.
