Speaking at the ECB Forum on Central Banking, Christine Lagarde said that the ECB will go as far as necessary to ensure that inflation stabilises at their 2% target.
In its 2022 annual economic report, the Bank for International Settlements has said that timely and decisive action by central banks is needed to restore low inflation.
The ECB Forum on Central Banking begins today in Sintra, Portugal.
ECB Governing Council member Peter Kazimir has said the central bank needs to raise rates by 50bp in September.
At a press conference, ECB President Christine Lagarde said that a rate rise above 25bp could happen in September if the inflation outlook does not improve.
European Central Bank Chief Economist Philip Lane said normalization of monetary policy will be gradual.