The president of the European Central Bank (ECB), Christine Lagarde, said Thursday that a new rise in interest rates is very likely at the next meeting of the institution in July.
Christine Lagarde was speaking at the press conference after the meeting of the Council of Governors this Thursday, in Frankfurt, in which the ECB decided to raise interest rates again by 25 basis points and slightly revised downwards the growth outlook for this year and next and on the rise of inflation.
“It is very likely that he will continue to raise rates in July,” he said.
The ECB president said such a scenario could materialize “unless there is a significant change in the baseline scenario”, rejecting the idea of the central bank taking a break from raising interest rates.
Defending, more than once, that there is still “a long way to go” to guarantee the 2% inflation target, the person in charge of the destinations of the single currency considered that the revision of the inflation forecast for 2025 is small, but a 2.2% “unsatisfactory” rate.
“We are willing to adjust all the instruments that are part of our mandate to guarantee a return to the objective and preserve the proper functioning of the monetary policy system,” he guaranteed.
The ECB Bank returned this Thursday to raise official interest rates by 25 basis points, raising the main rate to 3.5%.
In a statement issued after the meeting of the Board of Governors, the ECB indicates that the interest rate on main refinancing operations rose to 4%, the deposit facility rate rose to 3.50% and the The interest rate applicable to the permanent facility raised the liquidity injection rate to 4.25%, effective June 21.
Source: TSF
