ECB President Christine Lagarde said in a speech, “the ECB will ensure that a phase of high inflation does not feed into inflation expectations, allowing too-high inflation to become entrenched.”
“We have acted decisively, raising rates by 200 basis points, and we expect to raise rates further to the levels needed to ensure that inflation returns to our 2% medium-term target in a timely manner,” she said.
“But if we want to rebuild our supply capacity and strengthen domestic sources of growth, other policy areas need to refocus. Most importantly, they need to direct investment towards the transitions that will define our future – and the financial sector needs to be able to actively support these transitions,” she added.
