© Reuters. Presidente do BCE, Christine Lagarde REUTERS/Kai Pfaffenbach
FRANKFURT (Reuters) – Inflationary pressures in the euro zone remain high and the European Central Bank (ECB) will continue to raise interest rates to dampen underlying price dynamics, ECB President Christine Lagarde said on Wednesday, echoing the Bank’s most recent speech.
“Overall, price pressures remain strong and underlying inflation is still high,” she told the European Parliament in Strasbourg. “While most measures of long-term inflation expectations are currently around 2%, these measures require continued monitoring.”
She added that although confidence indicators are rising and energy prices have fallen, economic activity will remain subdued in the near term.
(Reporting by Balazs Koranyi)