By Hans Bentzien
FRANKFURT (Dow Jones)–The President of the European Central Bank (ECB), Christine Lagarde, at the start of her hearing before the Economic and Monetary Affairs Committee of the European Parliament reiterated the monetary policy messages from the ECB Governing Council meeting on September 14th. “Based on our recent assessment, we believe that our key interest rates have reached a level that, if maintained for a sufficiently long period, will make a significant contribution to the timely return of inflation to our target (of 2 percent inflation). will,” said Lagarde, according to the published text of the speech.
With its future decisions, the ECB will in any case ensure that key interest rates are kept at a sufficiently restrictive level for as long as necessary. “We will continue to adopt a data-driven approach and base our decisions on our assessment of the inflation outlook in light of incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission.”
On September 14, the ECB decided to raise its key interest rates by 25 basis points, increasing the bank deposit rate to 4.00 percent. The next council meeting will take place at the end of October, and inflation data for September will be published this Friday.
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DJG/hab/kla
(END) Dow Jones Newswires
September 25, 2023 09:11 ET (13:11 GMT)