Dusseldorf
The chairman of the European Central BankChristine Lagarde tempers expectations of further rapid interest rate cuts after the latest interest rate cut. The inflation in the eurozone “is currently on track to reach the two percent limit by the end of next year,” says a guest article by Lagarde for the “Rheinische Post”. “However, it will take a long time before inflation is completely eradicated from the economy. Until then, not everything will go smoothly. This path will require vigilance, commitment and perseverance,” the ECB President wrote.
“For this reason, interest rates should remain restrictive for as long as necessary to ensure long-term price stability. In other words, we have to keep the brakes on for a while, even if it is not as firm as before.” Lagarde explained. ‘The decisive factor for our future monetary policy decisions will be whether we can continue to observe that inflation returns to our target in a timely manner, that price pressures in the economy as a whole diminish and that our monetary policy remains effective against inflation. inflation These factors will determine when “It’s time to loosen the brakes further,” the central bank chief wrote.
The ECB cut key interest rates by 0.25 percentage points on Thursday. It was the first interest rate cut after a sharp increase in interest rates to combat inflation.
An announcement: This report is part of an automated service of the German Press Agency (dpa), which operates according to strict journalistic rules. It is not edited or controlled by the AZ online editors. Feel free to send questions and comments feedback@az-muenchen.de