Lagarde confirms in Davos that she will continue to fight against inflation

“Our intention is to bring inflation back to around 2%,” said the ECB president during a session with European Commission Vice President Valdis Dombrovskis and the prime ministers of the Netherlands and Croatia.


Carlos Manso Chicote

President of the European Central BankChristine LagardeThis Thursday, it was confirmed that the entity issuing the euro will continue to fight rising prices in the euro area. “Our intention is to bring inflation back to about 2% and that is why we have already raised interest rates by 250 basis points and we will continue the course,” he noted during his speech at a round table at the Davos Forum. In this sense, he added that “Inflation expectations are basic, not proven, and should be.”. In other words, the rate increase will continue.

All this despite the fact that in the last month of 2022, Inflation in the eurozone fell for the second month in a row, to 9.2%.. This represents a decrease of nine-tenths compared to the 10.1% recorded in November. Regarding the expected decline in activity this year, Lagarde was more optimistic and bet on a more moderate contraction than expected. This supports better performance in the labor market. “The news has been more positive in recent weeks and the discourse has changed.”he confessed.

In any case, the ECB chief ventured to ensure that “2023 will not be too bright, however It will be much better than expected.”. Lagarde also chose to advance both in the green transition and in the digital realm, to move towards “greater European autonomy and sovereignty”.

It also chose to advance other aspects of the monetary union, such as the capital market union and the banking union, in which it announced “less optimistic” . In addition to urging the adoption of “additional measures” in matters such as innovation.

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