The head of the European Central Bank (ECB), Christine Lagarde, reassured Europeans about the future of the region’s economy, writes CNBC. The head of the regulator believes that the eurozone will be able to avoid a large-scale recession.
According to Lagarde, the ECB is ready to raise rates at a faster pace than previously expected if necessary. So the regulator hopes to prevent further growth of inflation.
“We have significantly reduced our growth forecasts for the next two years. But we still expect positive growth rates thanks to internal reserves in case growth momentum is lost,” Lagarde said, commenting on experts’ assessments of the problems of the European economy, which include: a slowdown in growth rates, an energy crisis and an unstable food situation.
According to forecasts, inflation in the Eurozone will reach 6.8 percent by the end of the year, with a target level of two percent. It is expected that at the July meeting the regulator will raise the base rate for the first time in several years. Experts have been waiting for this step over the past months and criticized the ECB for indecision.