The European Central Bank will not hesitate to act if it sees a simultaneous rise in corporate profits and wages, President Christine Lagarde said.
Content will continue after the ad
Advertising
In an interview with French regional newspaper La Provence, she said policymakers still had “work to do” to control inflation.
ECB officials want to know whether companies will be willing to cut profits to compensate workers for rising costs, “or whether we will see a double-digit increase in profits and wages,” she said. “Increasing both at the same time would increase inflation risks, and we will not stand idly by in the face of such risks.”
The comments of the head of the ECB were made before the decision of July 27, in which an increase in the interest rate by a quarter point is expected. At the moment, ECB officials are debating whether to raise rates in September, writes “Bloomberg”.
2023-07-07 07:18:43
#ECB #act #sees #corporate #profits #employee #wages #growing #time #Lagarde
