The European Central Bank has raised interest rates by a total of 2.5 percentage points since July, in an effort to stem the historic rise in inflation, and pledged more monetary tightening at its upcoming meetings at a time when long-term price growth expectations are beginning to exceed the target rate of 2 percent.
Newspaper quotes "Yutarny I’m not" Croatian Lagarde, Saturday, as saying that European Central He knows that wages are increasing, perhaps faster than expected, adding that he should not allow inflation expectations to influence prices in the long term or for wages to have an inflationary effect.
Lagarde did not hint at any new move during the interview, but said the bank should "Takes necessary action" To reduce inflation to 2 percent from its current rate of close to 10 percent.
Lagarde added that the expected winter recession in European Unionresulting from higher energy costs, is likely to be short and insignificant, provided there are no additional shocks.
Many employees participated in strikes in European Union countries during the year with the aim of increasing wages, as workers in the railway sector went on strike in FranceTruck drivers announced Spain The strike, workers in the metal and electronics sectors in Germany also went on strike.
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Lagarde added, in statements published by a Croatian newspaper, that Ali European Central Bank Prevent wage increases from raising rates inflation Already high.
The European Central Bank has raised interest rates by a total of 2.5 percentage points since July, in an effort to stem the historic rise in inflation, and pledged more monetary tightening at its upcoming meetings at a time when long-term price growth expectations are beginning to exceed the target rate of 2 percent.
The Croatian newspaper “Jutarni List” quoted Lagarde, on Saturday, as saying that European Central He knows that wages are increasing, perhaps faster than expected, adding that he should not allow inflation expectations to influence prices in the long term or for wages to have an inflationary effect.
Lagarde did not hint at any new action during the interview but said the bank should “take the necessary measures” to bring inflation down to 2 percent from its current rate of close to 10 percent.
Lagarde added that the expected winter recession in European Unionresulting from higher energy costs, is likely to be short and insignificant, provided there are no additional shocks.
Many employees participated in strikes in European Union countries during the year with the aim of increasing wages, as workers in the railway sector went on strike in FranceTruck drivers announced Spain The strike, workers in the metal and electronics sectors in Germany also went on strike.
