Inflation, Lagarde’s strategy opposed to Draghi’s
What everyone in Europe feared in terms of inflation has happened: new rate hike by the number one of the ECB. Christine Lagarde has carried out her strategy, perfectly opposite to that of Mario Draghi “whatever it takes” with the more cynical “what it takes”. In other words, go “as far as necessary” to combat the inflationary trend which reached 10% in October.
The European Central Bank had decided on the first rate hike (after more than ten years in negative territory) in July 2022. And in the midst of the Ukrainian/Russian war winds, other countries such as Norway, the United Kingdom and Switzerland have also announced increases while the United States , after an illusory stop in the last increase, they confirmed at least two other next increases. “There is still a long way to go to bring inflation below the 2% target” Jerome Powell of the Fed told the US Congress. He was echoed by the governor of the Bank of England Andrew Bailey “It is still very high and we have to deal with it”.
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