Lagarde: Rates will remain at sufficiently restrictive levels for as long as necessary

  • Higher inflation forecasts mainly reflect higher energy
  • Rates will remain at sufficiently restrictive levels for as long as necessary
  • Rates were hiked to ‘reinforce commitment to our target’
  • The economy is likely to remain subdued in the coming months
  • The services sector, which had been resilient, is now slowing
  • Recent indicators suggest a weak Q3
  • Labor market remains resilient

The forecasts were out earlier with the decision:

  • 2023 GDP at 0.7% (previously 0.9%)
  • 2024 GDP at 1.0% (previously 1.5%)
  • 2025 GDP at 1.5% (previously 1.6%)
  • 2023 inflation at 5.6% (previously 5.4%)
  • 2024 inflation at 3.2% (previously 3.0%)
  • 2025 inflation at 2.1% (previously 2.2%)

This article was written by Adam Button at www.forexlive.com. Source