European Central Bank President Confident in Meeting Inflation Target

European Central Bank (ECB) President Christine Lagarde is confident the monetary authority will meet its target of getting inflation back down to 2%, and has said she is relatively confident over Europe’s gas reserves situation.

Record High Interest Rate Set by ECB

Last month, the ECB raised its key interest rate to a record high of 4%.

Interest Rates Contribution to Inflation

“The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target,” Lagarde said in an interview published on Sunday in the French paper La Tribune Dimanche.

The ECB’s website clarified that the interview was conducted on Oct. 2.

Reasons for Optimism in Economic Outlook

Lagarde added the fact that inflation was “currently falling significantly” was one of several reasons why she was not pessimistic regarding the short-term economic outlook.

She added that other reasons for this were economic reforms underway in Europe, and because Europe’s gas reserves situation was better than before.

“Structural reforms are being put in place. And, just one year ago, who would have thought that we would succeed in replenishing more than 90% of our gas reserves by September 2023?,” said Lagarde.

“This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence,” she added.