Christine Lagarde, the President of the European Central Bank, stated that interest rates in the European Union will remain high for as long as necessary to combat still-high inflation at an annual conference of central bankers in Jackson Hole, Wyoming. In one year, the ECB has raised its benchmark rate from minus 0.5% to 3.75% to manage a stagnating economy.
The ECB’s rate hikes have increased borrowing costs for consumers and businesses, while inflation still exceeds its 2% target despite a drop in energy prices.
ECB’s Lagarde says interest rates to stay high as the fight against inflation has yet to be won
