Lagarde: The ECB needs to keep interest rates sustainably high to combat inflation

European Central Bank President Christine Lagarde said that the European Central Bank needs to keep interest rates high to combat inflation in the medium term, in a sign of further monetary tightening. "We still have to raise interest rates sustainably, so it is time for us to act, look at this goal that we have set and achieve it," Lagarde told Spanish state television TVE.

"We are heading towards more sensitive decisions going forward, but we will be brave and we will take the decisions necessary to bring inflation back to 2% and we will undoubtedly do that," Lagarde said, which is why markets expect a new increase of 25 basis points at the European Central Bank meeting in June.