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European Central Bank will continue to increase interest rate — Lagarde

European Central Bank will continue to increase interest rate — Lagarde

Chairperson of the European Central Bank Christine Lagarde expressed on Thursday her determination to continue increasing the interest rate in the Euro zone for trimming inflation.

Lagarde, speaking at a conference held by the German bank Sparkasse in Hanover, said inflation rates are currently too high and will remain so for a long period, thus the European central bank is obliged to maintain the current financial policy, raising the interest rate in a bid to reach an inflation level of two percent.

The European central bank has been increasing the interest rate since July, currently standing at 3.75 percent, years after adopting an easy lending policy and injecting liquidity into the financial markets to stimulate lending and growth.

The central bank is expected to increase the interest anew on June 15.

Source: Kuwait News Agency