European Central Bank President Christine Lagarde has revealed that the bank is set to raise its interest rates by another half point at its March 16 meeting. Including this rise, the ECB’s rates will have been raised by a total of 350 basis points since July of last year.
“It is very likely that we will raise interest rates by 50 basis points,” Lagarde stated when asked about what would happen going forward. “This was a decision that was indicated at our last monetary policy meeting and all the numbers we have been seeing in recent days are confirming that this interest rate hike is very, very likely.”
Unable to confirm how long the interest rate hikes will continue, Lagarde acknowledged that the ECB still has much work to do in its effort to combat inflation. Currently, European inflation is more than four times that of the central bank’s target of 2%.
Aside from delivering its latest interest rate hike, the ECB is set to release its new economic forecasts going forward. While questions surrounding damage to economic growth persist, Lagarde defended the bank’s interest rate rises, stating that the priority is to extinguish rising inflation.