European Central Bank President Christine Lagarde: "We Are Ready Against Inflation"

French lawyer and politician Christine Lagarde, who serves as the President of the European Central Bank, stated that they are prepared for record levels as well as global inflation. Speaking about the quarter-point rate hike plan in July, President Lagarde underlined that if the inflation threat increases, they can find a solution even faster.

Making statements at the banking meeting held in Portugal, ECB President Christine Lagarde stated that a 25 basis point interest rate hike could be made at the July meeting and that they were ready to act more quickly on this issue. "If we see that higher inflation threatens expectations, we will withdraw stimulus more quickly," said President Lagarde. Lagarde, who added that the magnitude of energy and food shocks caused uncertainty in inflation, and that inflation started to increase widely in the services sector, emphasized that inflation pressures may be more than felt, and underlined that inflation shocks also negatively affected growth. Despite this, she added that they expect positive growth. Christine Lagarde said, "We will proceed on a gradual and sustainable path in interest rate increases after September." The European Central Bank (ECB) noted that they are preparing to raise interest rates for the first time in 10 years in order to control and stabilize the high inflation, which has reached record levels, in the shadow of concerns that stopping energy imports from Russia will trigger a recession. European Central Bank officials gave the signal of a 25 basis point increase in interest rates in their last meeting.   Source: Bloomberg HT