If so, there is a risk that the already high inflation cannot be suppressed. Lagarde wants to avoid it at all costs. “We will not stand idly by in the face of such risks,” he warns.
interest rate increase
The ECB chief’s remarks precede the interest rate decision on July 27. Lagarde has already said that interest rates in the Eurozone will almost certainly be raised by another quarter of a percentage point. Lagarde has previously said that ECB policy makers have “work to do”.
After the July meeting, the ECB will take a summer break. Whether interest rates will be raised further in September depends on the data available at that time.