ECB’s Lagarde says interest rates to stay high as the fight against inflation has yet to be won

Christine Lagarde, the President of the European Central Bank, stated that interest rates in the European Union will remain high for as long as necessary to combat still-high inflation at an annual conference of central bankers in Jackson Hole, Wyoming. In one year, the ECB has raised its benchmark rate from minus 0.5% to 3.75% to manage a stagnating economy.
The ECB’s rate hikes have increased borrowing costs for consumers and businesses, while inflation still exceeds its 2% target despite a drop in energy prices.