The European Central Bank (ECB) knows that high interest rates cause “suffering” for households with loans and the entity is fighting inflation to reduce these effects, the president of the European issuer, Christine Lagarde, said this Monday.
The president of the ECB reaffirmed before the European Parliament that interest rates will remain at a high level as long as necessary to control the increase in consumer prices.
The president of the ECB reaffirmed before the European Parliament that interest rates will remain at a high level as long as necessary to control the increase in consumer prices.
The ECB raised rates again at its last meeting in September, the tenth increase since July 2022. The main rate was increased by 0.25 points and was at a historical high of 4%.
“We remember the pain it means. The suffering that exists is in our thoughts,” Lagarde said.
The director of the issuer said that 30% of households in the 20 countries that use the euro have mortgage loans at a variable rate. These increases mean an automatic increase in your monthly payment.
“It’s difficult,” Lagarde acknowledged.
“Our duty is to anchor inflation within the target range in a timely manner,” said the president of the ECB, who predicted an increase in prices of 5.6% this year and 3.2% next year, far from the goal at 2% inflation.
