ECB president: Inflation still too high, growth to resume in 2024-25

July 07, 2023 (MLN): Christine Lagarde, the President of the European Central Bank (ECB) emphasized that inflation still exceeds the ECB's medium-term target of 2%, in an interview conducted by Geneviève Van Lède on July 05, 2023.

She cited factors such as falling commodity and energy prices for high inflation, highlighting the need for continued efforts to bring inflation back down to the target level.

Regarding economic growth, Lagarde noted flat growth in recent quarters but projected a return to potential growth in the euro area and France over the period of 2024-25.

She also touched upon the issue of employee wages, acknowledging that wages have risen more than expected but emphasizing the importance of considering firms' profit margins and potential inflation risks.

When discussing France's debt reduction, Lagarde highlighted the increased debt across all euro area countries during the pandemic.

As the health crisis subsides and energy prices fall, she emphasized the need to withdraw support programs and ensure public finances are put on a path that allows for a steady reduction of debt.

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