European Central Bank (ECB) President Christine Lagarde remarked on Monday while addressing the European Parliament's Committee on Economic and Monetary Affairs (ECON) that the institution is making the decisions on monetary policy meeting-by-meeting and depending on the current data.
Lagarde stressed that therefore she does not have a long-term view of the steps the bank will make in the future while insisting that "the view I have" is that interest rates must be high enough to combat inflation. She highlighted energy and food as the largest contributors to the rising inflation and admitted that that affects low-income more than high-income people.
Speaking about the ECB's lack of support for the demand, Lagarde said that rising rates contributes to the demand but that stimulating it further is not possible at the moment as that would affect price stability negatively.
