“There is no predetermined path” that establishes the rate to be reached to curb inflation, to ensure that it returns to the target set by the ECB, equal to 2%. Thus the ECB number one Christine Lagarde, in the press conference following the decision of the Governing Council of the ECB to raise the three reference interest rates of the euro area by 75 basis points.
Lagarde repeated the difference between inflation in the United States and that of the eurozone. The first is triggered by demand, the second by supply.
In any case, “we have a mission”, which is to bring down “incredibly high inflation”. Consequently, answering a reporter’s question, the chief executive of the ECB said that, “in case of need, we are also ready to raise rates beyond the terminal rate” (which, in the case of the ECB, is not a rate that has been determined).