President says bank will have to keep policy tight and avoid declaring an end to rate hikes
Christine Lagarde, president of the European Central Bank:"It is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached." Photograph: Alex Kraus/BloombergEuro zone inflation has entered a new phase which could linger for some time, requiring the European Central Bank to keep policy tight and avoid declaring an end to rate hikes, ECB president Christine Lagarde said on Tuesday.
The ECB has raised rates at each meeting over the past year, taking its deposit rate to 3.5 per cent, and promised even more tightening as soon as July as it hopes to arrest inflation. “It is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached,” Ms Lagarde told the ECB Forum on Central Banking in Sintra, Portugal.
The issue is that relatively quick wage growth is now keeping inflation under pressure as workers try to recoup earnings lost to inflation and this process is amplified by lower than expected productivity growth.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
In this week’s Business Post: Sinn Féin hits two-year slump in poll as Fine Gael narrows gapRyan Tubridy's future in RTÉ in doubt and Lucinda Creighton on President's ‘petulant posturing'
Read more »
Trump discusses secret ‘papers’ on Iran attack in newly-released recordingThe recording aired by CNN appears to indicate the former US president had in his possession a classified Pentagon document
Read more »
Protesters anything but neutral as Martin fumes at the forumPresident Michael D Higgins’s neutrality debate intervention in the Business Post last week has raised the prominence and the stakes of the Consultative Forum on International Security Policy
Read more »
Hundreds of O’Malleys from around world gather in Co Mayo for ‘clan rally’Former Governor of Maryland Martin O’Malley, one-time Democratic nominee for US president, takes to stage with band
Read more »
Protesters anything but neutral as Martin fumes at the forumPresident Michael D Higgins’s neutrality debate intervention in the Business Post last week has raised the prominence and the stakes of the Consultative Forum on International Security Policy
Read more »