Europe’s currency watchdogs promise a determined effort against the still record high inflation. “We expect to continue raising interest rates,” said European Central Bank (ECB) President Christine Lagarde. “Ultimately, we will raise interest rates to a level that brings inflation back to our medium-term target in a timely manner.” The ECB is aiming for price stability in the euro area in the medium term with inflation of two percent. In October, consumer prices in the currency area of the 19 countries were 10.6 percent above the level of the same month last year. “Inflation in the euro area is far too high,” Lagarde said. In addition, the risk of a recession has increased, although the latest economic data had surprised positively.
The key interest rate in the euro area is now 2.0 percent.