The president of the European Central Bank (ECB) gave a positive diagnosis of the euro zone for the second semester. She insisted on lowering inflation as a central goal.
Behind the rate hike last week, the president of the ECB, Christine Lagardepointed out in statements to the press that the latest data on economic production in France, Germany and Spain are “quite encouraging.”
In dialogue with the French newspaper Le Figaro, lagarde confirmed that the European monetary entity has good expectations for the second half of 2023. He insisted that the main goal of the recent measures is to lower the inflation.
ECB: positive data towards the second half of 2023
According to lagarde“the GDP figures for the second quarter in France, Germany and Spain are quite encouraging,” he declared, which “support our scenario of GDP growth of 0.9% in the euro zone this year,” he added.
days ago, andl ECB It raised interest rates by a quarter of a percentage point amid lingering concerns about inflation and the possibility of a future recession in the eurozone.
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Inflation has fallen steadily from a peak of over 10% last October, but remains above the target for the 2% set by the ECB.
“Inflation continues to decline, but it is still expected to remain too high for too long,” the bank said in a statement. He added that he would restrict economic activity “for as long as necessary” to reduce inflation.
Previous ECB rate hikes are slowly trickling down to the economy, damping rises in house prices and business lending.
But core inflation, which excludes volatile fuel and food prices, remains high. The ECB has left the door open for a new rate hike in September, even if this increases the risk of recession in the euro area.
Source: Ambito
