(Finance) – The Governing Council of the ECB is resolute in its objective of bringing inflation back to 2 percent in the euro area and “we will set interest rates at sufficiently restrictive levels for as long as it takes to achieve it”.
The president of the ECB reiterated thisChristine Lagarde in the press conference at the end of the Eurogroup. Lagarde then reiterated the formula already used yesterday by the Council, after the new increase in interest rates and in which many analysts see a sign of the possible reaching of the peak in rates. “Based on our current assessment,” he said, “we consider that key rates have reached levels that, if maintained long enough, will make a substantial contribution to the timely return of inflation to the target monster.”
President Lagarde instead glossed over a direct question on whether further increases in interest rates were possible by the institution, reiterating the articulated formula usedpassed yesterday by the Governing Council, in which many analysts see a signal that a peak in interest rates may be reached. “Based on our current assessment of the situation, expert opinion and analysis, we consider that key rates have reached levels thatand, if held long enough, will make a substantial contribution to the timely return of inflation to our target,” he reiterated. “This is our vision. But we also say that our future decisions to set rates at levels sufficiently restrictive and long enough for a timely return of inflation to 2%.” The decisions “will depend on the data. I cannot add anything regarding this in accordance with the Council’s position but I can assure you that we will bring inflation to 2%”.
Finally, Lagarde wanted to underline that from the finance ministers of the euro area “I have not received any questions, much less objections to yesterday’s decision” on rates, after the explanations provided.