ECB's Lagarde Says Inflation Expected to Remain Too High

The ECB is committed to reducing inflation to a 2% medium-term target. Despite a decline, inflation remains high, prompting a 25 basis point increase in key interest rates. This decision reflects the inflation outlook and monetary policy transmission. While inflation is expected to drop, it will stay above target for some time. The ECB will continue a data-dependent approach to set restrictive interest rates as needed.

What has been the impact of past rate increases on financing conditions?

How does the ECB plan to ensure inflation returns to its target?