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ECB president Christine Lagarde warned against lowering borrowing costs (Photo: Council of the EU)

ECB keeps rates high, despite flagging economy

Despite wages barely having contributed to inflation over the past years, European Central Bank (ECB) president Christine Lagarde warned against lowering interest rates too soon because wages might drive up inflation again later this year.

"Wages are expected to become an increasingly dominant driver of inflation," she said during a monetary policy dialogue with the European Parliament in Brussels on Thursday (15 February).

Inflation in the EU is set to decline from a steep 6.3 ...

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

ECB president Christine Lagarde warned against lowering borrowing costs (Photo: Council of the EU)

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

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