The President of the European Central Bank (ECB), Christine Lagarde is not exempt from giving hints about the extension of future interest rate hikes saying that inflation in the European Zone has not yet peaked.
His remarks came in response to questions about the possibility that the central bank will implement slower hikes in its next policy setting.
Inflation in the European Zone hit a record 10.6% year-on-year in October, with analysts forecasting it to have eased to 10.4% in preliminary estimate data for November to be released this week.
But contrary to those expectations, Lagarde said she does not see that inflation has reached its peak and that it will decline in the short term.
In fact, the ECB's policymakers still see a clear increase in the risk that inflation readings could rise higher than expected.
The ECB has raised interest rates by 200 basis points to 1.5% in three months to curb inflation.
In contrast to the Federal Reserve (Fed), the ECB started tightening measures later than it should have and it is now trying to continue its aggressive approach to lower inflation.
