The President of the ECB announced that the fight against inflation is bearing fruit and that the effects were visible on interest rates or in the real economy.
By NJ with AFP
Christine Lagarde wants to be optimistic. “We are getting closer to the goal” of inflation at 2%, after having “covered a lot of ground and made a lot of progress in this fight against inflation”, declared the President of the European Central Bank (ECB), Sunday July 30 , in an interview with Figaro.
“Obviously, monetary policy has started to work to bring inflation down. We see it in the credit figures, both on interest rates – our fellow citizens know this – and on the volumes of credit which are falling, as well as on the demand for credit from businesses. We are also starting to see it in the real economy, in real estate or in terms of investment, ”she said.
Inflation of 5.5% over one year
In contrast, Christine Lagarde remained vague on speculation around a pause on rate hikes after September. “There may be a further increase in policy rates, or perhaps a pause,” she said.
“A break, whatever the date, in September or later, would not necessarily be definitive,” she warned, however, recalling that this required that “inflation be brought down sustainably. to its target” of 2%.
The rise in prices has certainly slowed down in recent months, while the European Central Bank has multiplied rate hikes to slow inflation, but it remains at 5.5% in June over one year in the euro zone.