ECB’s Christine Lagarde, announced on September 8th, 2022 the largest historical increase in interest rates in the euro area by 75 basis points, and the intention of the supervisory authority to proceed with a new increase in interest rates, during the immediately following meetings of its Board of Directors.
One of the coming ECB meetings will take place in Nicosia on October 5th 2022, in the wake of the developments of the new Frankfurt interest rate policy.
After the end of Lagarde statements, it became known at the ECB headquarters that the shrinking of the portfolio of almost €5 trillion of bonds bought by the supervisor during the recent crises, the well-known quantitative tightening process, is expected to be discussed at the meeting of ECB officials in Cyprus.
Christine Lagarde indicated in her press conference that more interest rate hikes are likely to follow in an attempt to restore the 2% inflation target.