The Governor of the Central Bank has said the European Central Bank expects "to raise policy rates further in order to sustainably achieve our 2% target over the medium term."
The Governor, who is a member of the ECB's Governing Council, also said that the predicted slowdown in growth in the euro area "will not on its own be enough to ensure inflation returns to its target of 2%."
Gabriel Makhlouf was speaking remotely to a conference organised by Social Justice Ireland today.
Governor Makhlouf said spending to alleviate the impact of higher inflation should be directed at the most vulnerable and should also be "temporary, tailored and targeted" in order to limit the risks of "adding further to inflationary pressures".
The Governor also said that successful economies need "sound monetary policy that delivers predictable prices",
The Central Bank will concentrate on its core mandate of "price stability, a stable financial system and the protection of consumers," he added.
Speaking in a question-and-answer session after his speech, the Governor said that inflation affects the most vulnerable households the most and "if we don’t get on top of inflation, things will be even worse than they are now."
