The European Central Bank (ECB) will continue to raise interest rates, but is approaching the "final altitude at cruiser speed" as inflation falls. This was stated today during a banking congress by the President of the Frankfurt institution Christine Lagarde, quoted by France Press.
"We will continue to raise interest rates with determination and, without discouragement, until inflation returns to its medium-term target of 2 percent," Lagarde said in Hanover ahead of the German Savings Bank Congress.
ECB: Financial stability outlook remains fragile
Over the past nine months, the ECB has raised the key interest rate by a total of 3.75 percentage points seven times, with an increase of 0.25 points in May being the smallest of the cycle.
"When departing, the plane must gain altitude and then accelerate rapidly. However, once it reaches its target height, it can slow down," Lagarde said in the form of a metaphor. "We are now approaching our cruiser speed," she added.