In an interview with La Provence, European Central Bank (ECB) President Christine Lagarde said the authorities would not hesitate to take action if the company saw a rise in profit margins and salaries at the same time. Lagarde also stressed that politicians still need to work to contain inflation.
“Businesses want to know whether they will agree to tighten their profit margins to compensate for their employees, or see an increase in both profit margins and wages,” says Lagarde. used the phrases.
This assessment by Lagarde came just before the quarter-point rate hike decision, which was considered definitive at the meeting to be held on 27 July. On the other hand, it is known that ECB officials discussed whether to raise the interest rates again at the meeting in September.
ECB raises interest rates by 25 basis points
The European Central Bank (ECB) increased the interest rates by 25 basis points to 3.50 on June 15, in line with the expectations. Thus, the bank continued its interest rate increase cycle in the 8th meeting as part of the fight against high inflation. The ECB, which gave the message that interest rate hikes are not over in the text of its decision, raised its inflation forecast for 2023, while lowering its growth forecast.