European Central Bank President Christine Lagarde warned Friday that the bank may have to raise interest rates beyond merely withdrawing stimulus and into territory that could restrain growth as the bank fights to control record inflation in the 19 countries that use the euro.
“We expect to raise rates further, and withdrawing accommodation may not be enough," Lagarde said in a speech at a banking forum in Frankfurt, Germany. She said the bank intended to bring inflation down “in a timely manner” and that “how far we need to go, and how fast, will be determined by the inflation outlook.”
