European Central Bank (ECB) President Christine Lagarde said Tuesday that the next rate hike will depend on inflation data.
At an event hosted by the Frankfurt Society for Commerce, Industry and Science, Lagarde recalled that the ECB had raised interest rates by a total of 125 basis points in its last two meetings, the largest increase in its history.
Prior to this hike, interest rates were at historically low levels of 0%, so the risk of an overreaction early in the hike cycle is limited, Lagarde said.
“The appropriate pace of future interest rate hikes will be decided at each meeting. In fact, as we have repeatedly emphasized, we will continue to depend on data in all scenarios,” he said.
The central bank official added that the level at which interest rates are set and the pace will depend on how the outlook for inflation develops.
The ECB has indicated that it is normalizing monetary policy, halting debt purchases and raising interest rates to a neutral level that is neither stimulating nor restrictive.
Author: Lusa
Source: CM Jornal
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