The European Central Bank will continue to raise interest rates to curb inflation

Xinhua News Agency, Frankfurt, September 20 (Reporter Shan Weiyi) The Governor of the Central Bank of the European Central Bank Rakard said on the 20th that the European Central Bank will continue to raise interest rates to prevent high inflation from affecting economic behavior and a long -term issue.

In a lecture on a lecture on Frankfurt, Germany, Lagarde said that the European Central Bank's monetary policy was based on maintaining price stability. The level of key interest rates and interest rate hikes depended on changes in the economic environment and inflation prospects.

Lagarde said that the new crown epidemic and the Ukraine crisis have caused global supply problems to intensify, promote the rise in energy prices, continue the inflation rate in the euro zone, and the economy has been impacted. Since the beginning of this year, the contribution of energy prices has reached 30%to the overall inflation rate.

She said that the inflation rate of the euro zone has been at high for 10 consecutive months and may continue to rise in the short term. In order to cope with continuous high inflation, the European Central Bank increased key interest rates twice in July and September this year, and raised a total of 125 basis points. Historically and rapidly adjusting interest rates shows the determination of the European Central Bank to deal with inflation challenges.

"The European Central Bank needs to continue to move towards the normalization of monetary policy, and prepares to adjust the interest rate at any time to reach the medium -term inflation target of 2%." Lagarde said.

According to data released by the EU Statistical Bureau recently, the inflation rate of the euro zone in August calculated 9.1%at an annual rate, far exceeding the European Central Bank's 2%midterm inflation target.

[Editor in charge: Gu Yan]

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