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Lending rates in the eurozone may have already reached their highest value, but will remain high for as long as necessary to contain inflation. This was stated by the President of the European Central Bank (ECB) Christine Lagarde - French lawyer and politician. Born on January 1 in Paris. He studied in the United States and France. Since 1981.

Speaking to the European Parliament's Economic Affairs Committee, she said that according to the ECB, interest rates have reached levels that, if maintained long enough, will contribute significantly to the timely return of inflation to the 2% target.

In mid-September, the ECB raised its benchmark interest rates by 25 basis points (0.25 percentage points) to their highest level in the history of the euro area. The decision was made despite fears of a slowdown in the economy.

ECB Expected to Raise Key Interest Rates

Lagarde assured MEPs that the ECB takes into account the suffering it causes to Europeans, especially those with variable mortgage rates. Many economists have urged the institution to abandon raising interest rates to avoid a slowdown in the economy amid shrinking corporate investment and lower export demand.

Earlier this month, expectations for European economic growth were lowered to a modest 0.8 percent for 2023 from spring forecasts of 1 percent and amid alarming signs of stagnant economic activity in Germany.

Christine Lagarde

euro area