ECB's Lagarde says the ECB will ensure that a phase of high inflation does not feed into inflation expectations, allowing too-high inflation to become entrenched
Important
SourceNewsquawk
SectionECB
- We have acted decisively, raising rates by 200 basis points, and we expect to raise rates further to the levels needed to ensure that inflation returns to our 2% medium-term target in a timely manner.
- We expect to raise rates further – and withdrawing accommodation may not be enough
- Inflation in the euro area is far too high.
- Historical experience suggests that a recession is unlikely to bring down inflation significantly, at least in the short run.
- Interest rates are, and will remain, the main tool for adjusting our policy stance.
- But we also need to normalise our other policy tools and so reinforce the impulse from our rate policy.
- It is appropriate that the balance sheet is normalised in a measured and predictable way.
Via ECB