Monetary policy: Lagarde sees ECB well-positioned in fight against inflation
Rising energy prices are driving inflation further upwards. However, the ECB chief warns against focusing exclusively on energy prices when making interest rate decisions.
The European Central Bank's chief, Christine Lagarde, has stated that the bank's monetary policy is not solely determined by rising energy prices. Other factors such as economic growth and consumption are also considered, Lagarde said in Dublin. The bank's deputy governor, Boris Vujcic, echoed this sentiment, saying it would be unwise to focus exclusively on energy prices.
The inflation rate in the eurozone rose to 3.2 percent in August, driven by increasing oil prices due to the Iran war, and further pressure on consumer prices is expected from rising fuel and gas prices. The ECB has raised interest rates to combat high inflation and is expected to make further decisions based on data.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
