ECB boss says inflation will be moderate in 2022

President of the European Central Bank (ECB) Christine Lagarde was in Lisbon yesterday, on the request of President Marcelo (click here) and brought ‘good news’: a rise in interest rates is “out of the question” for next year, and she sees inflation “remaining moderate”.

In the context of Portugal’s state of political flux, these were welcome assurances.

Ms Lagarde told the Council of State that it was a moment for investors, and governments, to take advantage of the ‘favourable financial conditions’.

She was also positive about Portugal’s economic recovery – giving a boost to PS Socialists who have maintained throughout the budgetary debacle – which has prompted the dissolution of parliament – that they want to “guarantee sound public finances”.

In the financial expert’s opinion, Portugal is showing a “good, strong” bounce-back, “higher than the average of the eurozone”.

Refusing to be drawn in interview on the political crisis, she stressed that “stability” is “a key word”, writes Expresso.

Alluding to response given by powermakers after the 1755 earthquake, she said what was crucial then is just as crucial now “determination, courage and capacity to carry out reforms”.

natasha.donn@algarveresident.com