The head of the ECB commented on the increase in the key rate

ECB President Christine Lagarde said that the base interest rate will be maintained at a relatively high level until inflation returns to the target value of 2%. 

Earlier today, the ECB surprised market participants with an unexpected increase in the base interest rate by 25 basis points – to a historical maximum of 4.5% per annum. 

In addition, the regulator raised the annual inflation forecast for the eurozone countries in 2023 to 5.6% from the previous value of 5.4%. The forecast for next year has also been raised.

At a press conference, Lagarde expressed confidence that the ECB's current key interest rates will ensure a timely return of inflation to the target. She added that in the future, the bank's decisions will be aimed at ensuring the necessary restrictive level of this rate. 

The head of the ECB also stressed that at the moment it is impossible to say whether the key rate has reached its peak. Lagarde reiterated her position on inflation, noting that price growth is on the wane, but it will remain high for a long time.