ECB may have to restrict growth to control inflation, Lagarde says
ECB may have to restrict growth to control inflation - Christine Lagarde, President of the European Central Bank, stated that the European Central Bank will continue to raise interest rates and may need to limit economic activity to tame inflation. She said this on Friday, citing rates as the key instrument for balance sheet reduction. To combat inflation, the ECB raised rates by 200 basis points in July. It also stated that it will continue to tighten its policy via rate increases and a reduction of its debt holdings of 5 trillion euros ($5.2 trillion). Lagarde stated that "We expect…
