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In September, the ECB’s Governing Council members will meet again to discuss interest rate policy. There is a possibility that the monetary institution will hit the pause button, but this is not certain. “It is important that inflation comes down to 2%,” Christine Lagarde, the president of the European Central Bank, said Friday in a conversation with NBC. Bloomberg TV.
Why is this important?
The interest rate hikes by the European Central Bank put pressure on economic growth in the Eurozone. It has been very minimal in recent months. And earlier this year, the eurozone narrowly avoided recession. Pressure is mounting on the monetary establishment to stop raising interest rates. But shifting too quickly could cause inflation to gain momentum again. The ECB faces a delicate balancing act.context: The Jackson Hole Conference of the Federal Reserve is currently taking place. Members of the boards of directors of various central banks, including Lagarde, will be present during the event.
- Central bankers have used this conference many times in the past to make important policy statements. For example, Federal Reserve Chairman Jay Powell and European Central Bank Governing Council member Isabel Schnabel declared war on high inflation last year.
- During his speech in 2014 b
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