She warned that support for households and businesses by European governments has been too broad, suggesting it risks interfering with the ECB’s efforts to steer price gains back toward the 2% target from almost five times that now.
The European Central Bank will continue increasing borrowing costs, even with economic activity expected to “slow substantially,” according to President Christine Lagarde.
“We expect to raise interest rates further over the next several meetings to dampen demand and guard against the risk of a persistent upward shift in inflation expectations,” Lagarde told European Union lawmakers Monday in Brussels.
