European Central Bank President Christine Lagarde said that she will continue to focus on controlling inflation in the Eurozone, acknowledging the ECB will continue raising interest rates.
In an interview with the Nikkei Asia published on Wednesday, Lagarde reiterated the ECB doesn't foresee a recession this year. "We do not have a recession in our baseline projection for 2023, and we are in a better position than what we feared six months ago," she asserted. The ECB's next policy meeting is scheduled for June 15, with markets forecasting a new 25 basis point hike.
Commenting on the crisis in Ukraine, Lagarde said that there are still significant uncertainties in the air related to a possible weakening in demand for manufactured goods. The ECB president concluded the interview by saying that, although Russia threatens Europe on the security front, the biggest economic concern for the euro area is persisting inflation. The Eurozone's inflation inched up to 7% last month, showing signs of persistence.
