European Central Bank President Christine Lagarde has issued an alarm regarding economic performance in Europe, warning that inflation pressure will continue to remain high over the coming months. As a result, the institution it heads is assessing the possibility of implementing another austerity measure through increased interest rates during December.
Through a public proposal, Lagarde explained that there is still no final decision to raise rates next month, but stressed that current indicators do not signal a price drop.
She underlined that the ECB is carefully monitoring key economic indicators, including wage deals and company projections for their growth, with the aim of determining the next steps.
Currently, the rate of inflation in the common monetary zone ranks twice the official target of 2%, which has prompted some of the bank’s directors to suggest an increase in rates by 0.025 percentage points.
This evental movement comes after two previous increases driven by priced energy. However, the main concern remains to maintain the legal and economic balance, with the aim of increasing borrowing costs not hitting the economic stability of the 21 member states.
Meanwhile, Lagarde, who is 70 years old, is expected to complete its task at the top of the ECB during February, ahead of the official closure of the mandate. The names of Dutch Klaas Knot and Spaniard Pablo Hernandez de Cos have been coveted for her passage into this key position.
Regarding its political future and rumours of a possible run in France’s 2027 presidential election, Lagarde has dismissed claims of direct involvement as a candidate, suggesting that it only aims to remain part of the public debate.
Source Layer: Signal