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ECB to tackle inflation with more rate hikes

LISBON: President of the European Central Bank (ECB) Christine Lagarde said on Tuesday that ECB will "continue to raise interest rates in July" as inflation in the eurozone remains "very high and should remain that way for a long time."

In a speech given on the first day of the annual ECB Forum in Sintra, Portugal, she said that "the nature of the eurozone inflation challenge is changing", reported Xinhua.

According to the president of the ECB, the so-called "second phase" of the inflationary process "is getting stronger," pointing to a wage recovery.

"It is unlikely that in the near future, the central bank will be able to say with complete confidence that the maximum rates have been reached. That's why our policy needs to be decided meeting by meeting and must remain data dependent," she said.

"We have achieved significant progress, but, faced with a more persistent inflationary process, we cannot waver, nor even declare victory," she added.

–BERNAMA-XINHUA

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