Christine Lagarde: Interview with Grupo Vocento
First, I would point out that headline inflation has gone down in recent months, and will continue to decline in the next few months.
- First, I would point out that headline inflation has gone down in recent months, and will continue to decline in the next few months.
- The way forward is clear: we have to continue to take the measures needed to bring inflation back to 2%.
- What is the time frame for deciding whether you will change pace and moderate the rate hikes?
- As President of the ECB I have to be focused on the decision-making, which needs to take into account the data.
- These include our macroeconomic projections, the latest figures and the impact of our measures over time.
- And, of course, the views of all the governors in the Governing Council.
- Many experts are already talking about interest rates rising to 4% and they are not even ruling out further rate hikes in 2024.
- That is the medium-term inflation target, which is how price stability is defined for us.
- I know that they will be higher than they are now and we still have more work to do because we cannot declare victory.
- For the moment, the economy is resilient, employment is robust and unemployment is the lowest it has ever been.
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I know that people are suffering from inflation, particularly the most vulnerable and those who are most exposed, pensioners with low incomes. - And the measures should be tailored so that they encourage people to save energy rather than use it as if it cost nothing.
- And this adjustment needs to take place within a European framework and fiscal governance that will hopefully be decided soon.
- What do you make of Ferrovial’s decision to move its head office to the Netherlands for legal certainty reasons?
- What I will say is that Europe really needs to make progress on completing the capital markets union.
- Although we share the same currency, European markets are fragmented, with different legal frameworks and different taxation rules.
- We need to streamline all of this to make it easier for European businesses to obtain financing and to grow.