Lagarde Says ECB May Need Restrictive Rates for Price Goal
- Central bank’s job far from complete, Lagarde says in Tallinn
- Officials so far keen to lift rates further, despite recession
Christine Lagarde
Photographer: Ting Shen/BloombergThis article is for subscribers only.
European Central Bank President Christine Lagarde said interest rates may need to be lifted to restrictive levels to drag inflation back to the 2% target.
After raising borrowing costs by 2 percentage points in three months, the ECB may need take them to a point where they act as a brake on the economy, Lagarde said in Tallinn, Estonia, which has endured the euro zone’s worst surge in consumer prices, topping 25%.