European Central Bank President Christine Lagarde reiterated that the bank is meant to control inflation.
“We will raise the discount rate to the level necessary to return inflation to the target level,” Lagarde wrote in an article published by the German media group Funke on Friday.
The European Central Bank aims to keep inflation at 2% over the medium term. Inflation in the Eurozone is now at a record high of 8.6%, while in Germany it has reached 7.6%.
“Inflation is very high,” Lagarde said and said that high inflation is largely due to factors that central banks cannot control.
“However, we can guarantee that inflation does not remain permanently high,” she added.
The European Central Bank raised interest rates on Thursday for the first time in eleven years, and the rate hike was half a percentage point higher than expected.
However, the central bank began its fight against inflation much later than other major central banks such as the US Central Bank or the Bank of England.
Source: German media.