Xinhua News Agency, Frankfurt, November 18 (Reporter He Lili) European Central Bank President Christine Lagarde said on the 18th that it is crucial to ensure that inflation expectations remain stable when inflation is high, and the European Central Bank will take necessary measures in a timely manner to reduce the inflation rate to the medium-term target Level.
Lagarde delivered a speech at the European Banking Conference, saying that the changing environment has brought great challenges to the monetary policy of the euro zone. Inflation expectations need to be closely tracked and managed, and the ECB is expected to raise key interest rates further to bring inflation back to the medium-term target level.
Factors such as supply chain disruptions, energy production cuts and geopolitical crises have created new supply constraints in the global economy, she said. In this case, there is no commensurate increase in supply to match demand, causing prices to spike, leading to high inflation.
Lagarde said diversification of Europe's energy supply will have an impact in the coming years. In the long run, diversification of demand may accelerate the green transition in Europe, and large-scale investment in renewable energy will promote energy supply.
Lagarde said that accelerating the transition to cleaner energy, greater economic security, and a more digital and productive economy is crucial for Europe, and these areas require substantial investment.
(Editors in charge: Jia Wenting, Liu Jieyan)
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