ECB, Lagarde: ‘We expect new interest rate hikes. The economic outlook is getting bleaker – Economy

“The current state, we expect to raise interest rates further in the next few meetings to dampen demand and prevent the risk of a persistent upward shift in inflation expectations. ”He confirmed this the president of the ECB, Christine Lagarde, in a hearing in the Economic Committee of the European Parliament. “We will regularly evaluate our policy path in light of incoming information and evolving inflation outlooks. Our future policy rate decisions will continue to depend on data and will follow a meeting-by-meeting approach,” he added.

“Inflation was not caused by monetary policies.” “Monetary policy must act against inflation There is no doubt in our minds that we must act as much as possible to reduce inflation in the medium term.” This was stated by ECB President Christine Lagarde speaking to the EP, underlining how inflation is the “combination of two unprecedented shocks”, “the pandemic and the energy shock”.

“The unjustified war of aggression on Ukraine continues to cast a shadow over Europe. The economic consequences continued to unfold. ” “The outlook is getting bleaker. Inflation remains too high and is likely to remain above our target for an extended period of time “said the president of the ECB, specifying that” The depreciation of the euro has contributed to amplifying inflationary pressures “.

The ECB ‘shield’ “is not an instrument intended for a specific country”, goes “from the Baltics to Malta, and Croatia from January 1. I don’t have a specific country in mind”. ECB president Christine Lagarde said this in a hearing at the EP, answering a question if you look to Italy after the elections for the use of the ‘Transmission protection instrument’ (TPI). “It is not the only tool” in the hands of the ECB, she also pointed out, “we have a variety of tools that we have been using since July”.

Lagarde: ‘Economic prospects increasingly bleak’

I can’t stop Putin’s horrible and unwarranted actions, I wish I could, but I can’t. I can’t lower the price of gas, I wish I could, but I can’t. Perhaps a good reform of electricity pricing would help more, “ECB President Christine Lagarde told the European Parliament.