Inflation hasn’t reached the maximum, says Christine Lagarde from ECB

On Monday, the head of the European Central Bank Christine Lagarde declared that inflation in the eurozone (EZ) hasn’t yet reached the maximum. It can even exceed the expectations. In such a way, Lagarde hints at the upcoming price growth. 

There are rumors that the ECB will take a soft approach to rate increase. However, Lagarde’s comments and Dutch central bank head Klaas Knot’s statement can stop this. 

The head of the ECB stated in the European Parliament that she doesn’t yet see signs of decreasing inflation or its maximum.

Economists asked by Reuters said that the inflation level in EZ will be 8.5%. In 2023, it will be 6.0%, and in 2024 it will reach 2.3%. In 2025, inflation will finally target 2% of the central bank. 

Now, two opinions are fighting on the market: whether the central bank will raise interest rates by 50 bp or 75 bp. The result will be known at the session on December 15.