During a symposium in Jackson Hole, European Central Bank (ECB) President Christine Lagarde emphasized the necessity for interest rates in the eurozone to stay elevated for an extended period.
According to Euronews, over the past year, the key interest rate in the euro area has surged from 0.5% to 3.75%, marking the sharpest increase since the launch of the single European currency. Despite the progress achieved, Lagarde asserts that inflation remains far from the desired 2% target, currently averaging at 5.3% across the eurozone.
Similar anti-inflation measures are being adopted by the United States Federal Reserve, as confirmed by its Chair, Jerome Powell.
On August 25, powell stated that attaining target indicators will require a prolonged journey, yet he did not rule out the possibility that the Federal Reserve might maintain the current interest rate level at the upcoming meeting, rather than further raising it.
