Christine Lagarde: We will manage to tame inflation

European Central Bank President Christine Lagarde “promises” that the ECB will “do everything possible” to tackle inflation and “will succeed”, in a welcome message to Europeans worried about a contraction in their purchasing power of strength.

“We are raising interest rates and will raise them further, at a steady pace, until they are at a level that will ensure a rapid return of inflation to the medium-term target of 2%,” Christine Lagarde said in the video message.

“And we will succeed,” he assures.

Since July, the ECB has raised interest rates at the fastest pace on record, raising them by a total of 2.5 percentage points, with +0.5 point in December, with the intention of continuing in the same direction.

High inflation “hits everyone, especially the poor.” “I promise we will do everything possible to reduce inflation,” says Christine Lagarde.

Interest rate hikes of 50 basis points could “become the new norm in the short term” and “for some time,” ECB Vice President Luis de Guidos told Le Monde newspaper.

At the end of 2021, Christine Lagarde said that interest rates were probably not going to rise during 2022, when mild inflation was still considered a passing phenomenon.

But “Russia’s terrible war against Ukraine and its people”, with its chain of human suffering, “caused energy prices to rise, also leading to a spike in inflation across Europe”, reaching 11% autumn in the eurozone.

Christine Lagarde welcomes Croatia to the eurozone, which will be the 20th country to adopt the common European currency on January 1. A fact that the president of the ECB promises to “celebrate”.

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