“It is clear that we are not stopping interest rate hikes and we still have a way to go,” the Fed said on Thursday. Christine Lagarde, after the decision for a new increase in reference rates by 0.25%.

“We all agreed that an increase in interest rates was necessary, we are determined to reduce inflation,” he clarified.

In fact, Christine Lagarde made it clear that stopping interest rate hikes was not even on the table, while some governors on the Central Bank’s board even supported a 50 basis point rate hike.

As he noted, headline inflation has eased in recent months but underlying price pressures remain strong. Our future decisions will ensure that our interest rates reach a level that is sufficiently restrictive to reduce inflation to the 2% target in time and will be based on economic data, it said.

As for the eurozone economy, Ms Lagarde noted that domestic demand and consumption remain weakwhile at the same time there is a divergence in the performances of the different sectors of the economy, with the outlook for manufacturing deteriorating.

Christine Lagarde warned that wage pressures remain strong, warning that there are upside risks to inflation. In this direction, he called on the governments to withdraw support measures in households and businesses for energy consumption.

“There are still significant upside risks to inflation (…) Recent wage deals have added to the upside risks.” “Higher wage growth or profit margins could increase inflation,” he warned.

“The resilience of the labor market could lead to higher growth,” added the head of the ECB.

“The banking sector of the eurozone has proven to be resilient,” Ms. Lagarde also noted.

“According to a recent survey, bank lending is likely to continue to decline.”