Interview with Christine Lagarde, President of the ECB, conducted by Adolfo Lorente, from El Correo

5 March 2023

Will you raise interest rates by another 50 basis points at your March meeting?

It is very likely that we will raise interest rates by 50 basis points. This was a decision that was indicated at our last monetary policy meeting and all the numbers we have been seeing in recent days are confirming that this interest rate hike is very, very likely.

Inflation, especially underlying inflation, is still very high. Are the ECB’s measures not producing the results that you expected?

First, I would point out that headline inflation has gone down in recent months, and will continue to decline in the next few months. Core inflation, which in the euro area excludes energy and food, is too high. In Spain, where this indicator also includes processed food, it stands at 7.7%. The way forward is clear: we have to continue to take the measures needed to bring inflation back to 2%. And we will do so.

What is the time frame for deciding whether you will change pace and moderate the rate hikes? Perhaps at the meeting before the summer? Or at the end of this year?

We are data dependent. Many governors are making suggestions or predictions and giving their opinion and personal analysis. As President of the ECB I have to be focused on the decision-making, which needs to take into account the data. These include our macroeconomic projections, the latest figures and the impact of our…