Lagarde says ECB policy is likely to stay loose in 2022
ECB president says eurozone must not “rush into a premature tightening”
European Central Bank president Christine Lagarde has said he central bank is likely to keep policy accommodative in 2022, despite rising eurozone inflation.
In October, year-on-year eurozone inflation, measured by the Harmonised Index of Consumer Prices, rose by 4.1% – the highest level since 2008. This is well above the ECB’s 2% target.
Nonetheless, Lagarde made clear “the conditions to raise rates are very unlikely to be satisfied next year”. In a speech today (November 19), she added that
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