President of the European Central Bank (ECB) Christine Lagarde said that additional measures are needed to curb inflation. She spoke about this in the program “Face the Nation” on CBS.
In an interview, Lagarde shared that it is necessary to use all the tools to contain the price increase. She also stressed that the inflation rate in Europe is very high, and this is directly related to the special operation in Ukraine.
“If I raise interest rates today, it will not lead to lower energy prices. Thus, we have embarked on this path of phasing out accommodative monetary policy. Therefore, we will interrupt the purchase of bonds in the third quarter,” she said.
The inflation rate in European countries has reached its maximum in the last few years. Thus, in Germany, consumer prices rose by 7.2% in March compared to last year. Similar growth in all categories of goods and services is observed in other EU countries. Because of this, many European Central Bank officials increasingly agree on the need to raise interest rates. According to forecasts, an increase in the cost of loans can be expected by September.