ECB: High interest rate also going forward

Published 8 June 2024 at 11.46

Economy. The European Central Bank (ECB) has lowered its key interest rates for the first time since 2019, which received a lot of media attention in Sweden, where many are heavily leveraged in the housing market.

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But now the president of the central bank, Christine Lagarde, says that the fight against inflation is far from over and signals that the interest rate may remain stationary until the inflation target is reached.

At the same time that the ECB lowered the interest rate slightly, the central bank simultaneously raised the inflation forecast for 2025 from 2.0 to 2.25 percent.

“In other words, we need to keep our foot on the brake for a while longer, even if we don't press down as hard as before,” writes Lagarde in a debate article that has been published in several European newspapers.

Inflation in the euro countries rose more than expected in May, to 2.6 percent.