(CTN News) – As part of an interview published on Sunday, Christine Lagarde, president of the European Central Bank (ECB), said that she was confident that the ECB would achieve its target of bringing inflation back down to 2% and was reasonably confident on the situation with Europe’s gas reserves.
As you may know, the ECB increased its key interest rate to a record high of 4% at the end of last month.
“The key interest rates at the ECB have reached levels that, if maintained for a sufficiently long period of time, will make a substantial contribution to the timely return of inflation to its target level,” Lagarde said in an interview published on Sunday in the French daily La Tribune Dimanche.
ECB’s website has clarified that the interview was conducted on October 2 as it appears on the ECB’s website.
As part of her explanation for why she was not pessimistic regarding the short-term economic outlook, Lagarde mentioned the fact that inflation was “currently falling significantly.” She considered this among several reasons as to why she was not pessimistic.
Additionally, she maintains that the economic reforms currently underway in Europe are also contributing to this phenomenon, as well as the fact that Europe’s gas reserves are in a better state than they used to be due to the reforms.
There have been a number of structural reforms which have resulted in the country as a whole moving forward in a positive direction.
Just a year ago, who would have thought that we would be able to replenish more than 90% of our gas reserves by September 2023 – which is just one year from now? This is what Christine Lagarde said in her speech.
“We are now able to look forward to the upcoming winter with a lot more confidence than we had before, if not calmly, then at least with a slight degree of calm,” she added.