BRUSSELS - Decisions on the forthcoming interest rate hikes by the ECB to "ensure that inflation returns to the medium-term target of 2% in a timely manner"
"will continue to depend on the data"
.
"How far we need to go and how fast we need to get there will depend on our updated outlook, the persistence of shocks, the reaction of wage and inflation expectations, and our assessment of the transmission of our policy stance."
The president of the ECB Christine Lagarde says it in her speech to the economic and monetary affairs committee of the European Parliament.
"
", explains Lagarde.
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In December, "we will outline the key principles for reducing bond holdings in our asset purchase program portfolio. The balance sheet should normalize over time in a measured and predictable manner."
This was stated by the president of the ECB, explaining that "interest rates are and will remain the main tool for fighting inflation".
"In the current context of high inflation, fiscal policy must be careful not to increase inflationary pressures", adds Lagarde in her speech to the Economic and Monetary Affairs Committee of the European Parliament.
"Fiscal support should therefore be targeted, personalized and temporary."
"We also welcome the Commission's proposals to reform the EU's economic governance framework."
Lagarde says it in his speech.
" Sustainable fiscal policies
are needed
not only to ensure medium-term debt sustainability, but also to support the three key transitions that will determine our future and our growth pattern: towards cleaner energy, greater economic security and a more digital and productive economy".
With respect to the price cap, "we will give an expert and weighted opinion", "to see what role we can play, how we can help and in what respect from the point of view of financial stability", but "not an opinion on the efficiency of the instrument" which it's not up to us.
"We certainly cannot act as substitutes for the political decisions that must be taken" and which concern "the political level and not the level of the European central bank".
The euro flies up to 1.0497 dollars, a breath from 1.05,
marking the highest since the end of June on Bloomberg screens.
The words of ECB president Christine Lagarde weigh on the market, saying that inflation has not reached its 'peak' and explained that "we will raise rates further".
Shortly before, Dutch governors Klaas Knot and Spanish governors Pablo de Cos used 'hawkish' tones that could question expectations for a cautious rate hike, below 75 basis points, at the ECB meeting on 15 December.