European Central Bank President Christine Lagarde said the ECB will set borrowing costs as high as needed and will leave them at that level as long as it takes inflation to return to its target.
Describing the era of uncertainty, Lagarde said it was important for central banks to provide an anchor to the economy and ensure price stability in line with their respective mandates.
Speaking at the annual conference of central banks in Jackson Hole, Wyoming, Lagarde said, In the current environment, this means - for the ECB - setting interest rates at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to our target. 2 percent in the medium term.
