European Central Bank (ECB) President Christine Lagarde said Thursday that another rate hike is highly likely at the institution’s next meeting in July.
Christine Lagarde was speaking at a press conference following Thursday’s meeting of the Board of Governors in Frankfurt, at which the ECB decided to raise interest rates again by 25 basis points and slightly revised down its growth outlook for this year, next and beyond. rising inflation.
“It is very likely that rate hikes will continue in July,” he said.
The ECB president said such a scenario could materialize “unless there is a significant change in the baseline scenario”, rejecting the idea that the central bank would take a break from raising interest rates.
Repeatedly advocating that there is still “a long way to go” to guarantee a 2% inflation target, the single currency’s official thought the 2025 inflation revision was small, but the 2.2% pace was “unsatisfactory.”
“We are ready to adjust all the instruments within our mandate to ensure a return to the goal and maintain the proper functioning of the monetary policy system,” he assured. The ECB today raised key interest rates by 25 basis points, while the main rate increased to 3.5%.
In a statement released after the meeting of the Board of Governors, the ECB indicates that the interest rate on the main refinancing operations has increased to 4%, the rate on the deposit line has increased to 3.50%, and the interest rate applicable to the constant lending rate providing liquidity has increased. up to 4.25% from June 21.
Author: Portuguese
Source: CM Jornal
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