“The fight against high inflation is not over yet”: Christine Lagarde, two days after the first rate cut carried out by the ECB since 2019, on the blog of the European Central Bank takes stock of the situation and, looking at future moves, underlines how it is more necessary than ever to remain vigilant despite the progress made on various fronts. For this reason, explains Lagarde, “interest rates will remain restrictive for as long as necessary to ensure price stability on a lasting basis”.
Lagarde then explains how inflation is on track to reach 2%, the Eurotower reference target, by the end of the year. But, he warns, “there is still a long way to go” before it is finally defeated. “It won’t be an easy journey – he adds – vigilance, commitment and perseverance are needed”.
“In other words – he says – we still have to keep our foot on the brake for some time, even if we are not as pressured as before. Our future decisions will depend on three things: whether inflation returns to our target in a timely manner , if price pressure on the economy eases, if our monetary policy proves effective in containing inflation.” “These factors – concludes the president of the ECB – will determine when we can take our foot off the brake”.
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