On May 24, European Central Bank President Christine Lagarde promised to restore the inflation rate in the euro zone to the statutory target level of 2% by further raising borrowing costs.
“We will bring inflation back to our 2 percent target over the medium term,” ECB President Christine Lagarde said on Tuesday.
“That’s why we’re raising rates at a record pace, and why we’re going to raise rates tight enough, and keep them there for as long as necessary, to get inflation back to our target level in time.”
The ECB has raised interest rates by 375 basis points since last July and is expected to raise rates by another 25 basis points at its next two meetings.
Some policymakers have suggested that the ECB may need to continue tightening monetary policy beyond the summer.