“The ECB’s interest rates will still have to increase significantly at a sustained pace” warns Lagarde!

“The ECB’s interest rates will still have to increase significantly at a sustained pace to reach sufficiently restrictive levels” and “stay there as long as necessary”, affirmed the central banker during a reception of the operator of the Frankfurt Stock Exchange.

“We must reduce inflation” and “we will achieve this objective”, insisted Christine Lagarde.

For the time being, inflation in Europe “is much too high”, declared Lagarde, as at the Davos forum last week. This is “in part because of our vulnerability to changing geopolitics of energy,” she explained.

“In other words, we will stay the course to ensure the rapid return of inflation to our target” of 2%, concluded Christine Lagarde, while the decline in purchasing power linked to the surge in prices s is imposed as a major concern for Europeans.

Here is.

I believe that is clear.

So if the foreign exchange markets have understood that the rates in the euro zone will continue to rise and therefore the rate differential with the United States will fade, which is already strengthening the euro by making it rise against the dollar, the stock markets continue to rise as if nothing had happened!

It is not said that the current rise is very durable.

Charles SANNAT

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Source AFP via 20 Minutes.fr here

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