Speaking on Monday, Christine Lagarde repeated the European Central Bank’s guidance that neither promises nor rules out further rate hikes
The European Central Bank’s record high deposit rate could help cut inflation to 2 per cent, ECB President Christine Lagarde said on Monday, repeating the bank’s guidance that neither promises nor rules out further rate hikes.
“We consider that our policy rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to our target,” Lagarde said. “The labour market is finally adjusting and will probably take a little bit more time to adjust,” she told European Parliament’s Committee on Economic and Monetary Affairs. “Job creation in the services sector is moderating and overall momentum is slowing.”
The ECB launched the review last December, partly to reduce the 3.7 trillion euro excess liquidity sloshing around in the bank sector, but disagreements over a host of technical issues already pointed to a delay.
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