Monetary policy has not reached a sufficiently restrictive level, she said. Christine Lagarde during a press conference after announcing his decision ECB increase interest rates by 25 basis points. He said the decision was “almost unanimous” and that all central banks agree on the need for a rate hike, adding that no one is supporting a pause. “We still have a way. We will not stop,” said Lagarde.

As at the previous meeting, he did not give instructions for the next meeting in June, stressing that future decisions would depend on new data.

Ms Lagarde lashed out at persistently high inflation, saying headline inflation has eased in recent months but underlying price pressures remain strong.. Echoing the text of the Board’s announcement, he said that “our future decisions will ensure that our interest rates reach a level that is sufficiently restrictive to bring inflation down in a timely manner and will be based on economic data.”

Near, Christine Lagarde urges governments to withdraw support measures as energy crisis eases. According to him, fiscal policy should increase productivity and reduce public debt. In addition, he welcomed the Commission’s proposals for new fiscal rules.

7th consecutive promotion

The European Central Bank (ECB) has embarked on another 25 basis point hike in interest rates. Thus, after the seventh consecutive increase, the key interest rate of the ECB is now 3.25%. This decision was expected and largely already discounted by the markets.

The ECB’s 25 basis point increase in three interest rates was the lowest since it began raising them last summer..

The ECB has raised interest rates seven times since last July., only 3.75%. This increase is also the largest since the establishment of monetary union. Analysts believe that since today’s increase is the smallest in the current cycle, this indicates the intention of the ECB to enter the final stage of this aggressive tightening cycle.

While recent data confirmed that inflationary pressures are more resilient than originally expected, weak credit growth and the latest results from the Bank Lending Review show that rate hikes are leaving a clear mark on the economy for now. And these effects were stronger and materialized faster than the ECB probably expected.

In its statement, the ECB indicates that future decisions by the Governing Council will ensure that key interest rates are reached at levels that ensure a timely return of inflation to a medium-term target of 2% and maintaining these levels for as long as necessary.

The Board of Directors, the message emphasizes, will continue to make decisions on interest rates in accordance with the data that will be applied each time.

Source: money review