European Central Bank President Christine Lagarde said interest-rate increases may need to continue beyond a planned half-point move in two weeks’ time.
(Bloomberg) — European Central Bank President Christine Lagarde said interest-rate increases may need to continue beyond a planned half-point move in two weeks’ time.
March’s hike is both necessary and very likely, Lagarde told Spanish television show Espejo Publico on Thursday. Policymakers will do everything to return inflation to the 2% target from more than four times that now, she said, declining to speculate on how high borrowing costs will eventually be lifted.
The ECB chief is set to preside over a second straight rate increase of 50 basis points as officials maintain their inflation-fighting efforts following stronger-than-anticipated European data this week.
Investors now see the deposit rate being lifted to a peak of 4%, up from its current level of 2.5%.
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