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Lagarde: Inflation stays high, economy resilient
The President of the European Central Bank, Christine Lagarde, confirmed that the Eurozone economy has demonstrated resilience during the second quarter of the year, despite the repercussions of the energy shock triggered by the war with Iran. Economic growth was widespread across various countries and sectors, and this trend is expected to continue into the third quarter, following the ECB’s decision to raise interest rates by 25 basis points to 2.50% in an effort to contain the high inflation resulting from the energy price shock. Forecasts indicate that inflation will remain above the target for an extended period, with elevated inflation risks and downside risks to economic growth, amid ongoing inflationary pressures stemming from the conflict in the Middle East.
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