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Lagarde Says Projections Anticipate Shallow and Short Lived Recession

ECB
  • Final Q: Don't you fear that higher rates will lead the eurozone into recession?
  • A: In our staff projections, we anticipate at the turn of the year, a shallow and short lived recession. We also anticipate that after that, for various reasons, the recovery will pick up. But we also believe, because it is our job, that we have to deliver on our mandate of price stability. With the current projections, we have to stay the course, and raise rates significantly at a steady pace, until such time that our interest rates deliver the 2% inflation target.
  • Press Conference Ends

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