FRANKFURT, Sept 8 (Reuters) – The European Central Bankraised its key interest rates by an unprecedented 75 basispoints on Thursday and signalled further hikes, prioritising thefight against inflation even as the bloc’s economy is headingfor a likely winter recession.
Following are highlights of ECB President Christine Lagarde’s comments at a news conference after the policy meeting.
“We took today’s decision and expect to raise interest rates further because inflation remains far too high and is likely to stay above our target for an extended period.”
Inflation still rising
“According to Eurostat’s flash estimate, inflation reached 9.5% in August. Soaring inflation and food prices, demand pressures in some sectors owing to the reopening of the economy, and supply bottlenecks are still driving up inflation.”
More rate hikes to come
“Over the next several meetings, we expect to raise interest rates further to dampen demand and guard against the risk of a persistent upward shift in inflation expectations.”
(Reuters Global News Desk)
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