Lagarde is likely to raise interest rates further

European Central Bank President Christine Lagarde has said that there may be a need to raise interest rates by more than half a point in the planned two weeks, according to Bloomberg. Yesterday, Lagarde told the “Espego Publico” program on Spanish television that the increase scheduled for March is necessary and very likely.

She added that policymakers will do their best to bring inflation back to the target of 2% from the current rate, which is 4 times higher. She declined to speculate on how much borrowing costs will eventually be raised. Lagarde is set to preside over a second consecutive 50 basis point interest rate increase, while officials maintain anti-inflation efforts.