The president of the European Central Bank (ECB), Christine Lagarde, on Thursday called on the governments of the euro zone to begin “quickly” to reduce budget support for families and companies, to curb inflation.
“It is important to quickly begin to reduce these measures in a concerted way”, when “energy prices drop”, to avoid “increasing inflationary pressures in the medium term”, Lagarde declared, at a press conference, after the monetary policy meeting of the ECB
Lagarde also said that the ECB “stands ready to act, if necessary” to “preserve financial stability.”
The ECB decided this Thursday to raise its interest rates by 50 basis points, despite the turbulence in the banking sector.
The institution justified the decision with its determination to ensure “a timely return of inflation to the 2% target in the medium term.”
Source: TSF
