European Central Bank (ECB) President Christine Lagarde this Thursday called on eurozone governments to “quickly” begin reducing budget support to households and businesses to curb inflation.
“It is important to start phasing out these measures quickly in a coordinated manner” when “energy prices fall” to prevent “inflationary pressures from building up in the medium term,” Lagarde said at a press conference following the monetary policy meeting of the ECB.
Lagarde also said the ECB is “ready to act if necessary” to “preserve financial stability”.
The ECB decided today to raise its interest rates by 50 basis points, despite the turmoil in the banking sector.
The institution justified the decision with its determination to ensure “a timely return of inflation to the medium-term target of 2%”.
Source: DN
