Christine Lagarde, President of the European Central Bank (ECB), has indicated that the institution is considering further interest rate hikes while simultaneously evaluating the impact of previous increases on both global and eurozone economies. The comments were made during a discussion with Tom Keene in Marrakech on Friday.
Lagarde highlighted an unprecedented tightening of financing conditions and anticipated additional effects. These remarks come ahead of the ECB’s decision on October 26, which will not involve any immediate rate changes but will include a review of the series of 10 rate increases that have been implemented previously.
Despite no immediate changes being planned for the upcoming decision, Lagarde did not rule out another increase in borrowing costs. The ECB’s aim is to achieve a 2% medium-term inflation rate, and any adjustments to their monetary policy will be made with this goal in mind.
The ECB’s decision in December will be based on fresh projections and will play a crucial role in reevaluating their monetary policy stance. This suggests that any potential further rate hikes may be dependent on the economic outlook at that time.
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