European Central Bank (ECB) President Christine Lagarde, in her speech in which she stated that they will continue to increase interest rates in July, said that they will not be able to announce that the ECB’s historic interest rate hike cycle has come to an end anytime soon.
ECB Governor Christine Lagarde made important statements on the monetary policy of the Central Bank in Sintra, Portugal on Tuesday.
Stating that it is not very likely to say with full confidence that the ECB’s peak interest rates have been reached in the near future, Lagarde said, “Unless there is a significant change in the outlook, we will continue to increase interest rates in July.” used his statements.
Lagarde also said he wanted to “make it clear” that interest rates will stay at current levels for as long as necessary.
While inflation remains the primary concern in the euro area, figures released on Monday showed an unexpectedly large drop in Germany’s job outlook. On the other hand, last week’s data indicated that activity in the Eurozone, which consists of 20 countries, almost stopped in June.
The ECB increased interest rates by 25 basis points.
The European Central Bank (ECB) increased the interest rates by 25 basis points to 3.50 on June 15, in line with the expectations. Thus, the bank continued its interest rate increase cycle in the 8th meeting as part of the fight against high inflation. The ECB, which gave the message that interest rate hikes are not over in the text of its decision, raised its inflation forecast for 2023, while lowering its growth forecast.