ECB: Lagarde, probable increase of 50 points in March

ECB: Lagarde, probable increase of 50 points in March

“It’s still too early to declare victory over inflation.” This was stated by the president of the ECB Christine Lagarde in an interview with the Spanish editorial group Vocento, according to whom “we are making progress”, but “‘there is still much to do”. “I know that people are suffering from inflation – he adds – especially the most vulnerable and exposed ones such as low-income retirees. At the ECB we believe that government measures should be targeted at this type of people” to then be reviewed when ” energy prices will fall and food prices will stabilise”. “It is very probable – he continues – that we will increase interest rates by 50 basis points” at the meeting on 16 March. It was a decision that we had indicated at the last meeting and all the numbers seen in recent days are confirming that this increase is very, very likely”. For the future, Lagarde does not say too much: “we depend on the data, many central bank governors they are spreading their opinions and personal analyses, as president of the ECB I have to focus” on the data. The number one of the Eurotower also explained that European banks could launch measures to alleviate the rise in interest rates on borrowers and avoid problems for debtors. “I’m sure many banks are ready to renegotiate” mortgages, she said. “It’s in their interest” and not “they want unpaid loans on their balance sheets”. As for the hypothesis of a rate cap, the president of the The ECB replied that it is a matter “between creditor and debtor. I’m sure many banks are ready to reconsider the terms of the loan. And not for charity” but “because it is in their interest to have” healthy debtors. REPRODUCTION RESERVED © Copyright ANSA



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