He will be joined in Sintra by Federal Reserve Chairman Jerome Powell and Bank of England Governor Andrew Bailey. They will be joined by BIS Managing Director Augustin Carstens, and the four officials who will gather for a discussion on Wednesday at the end of the symposium.
raise interest rates
Ms Lagarde’s speech scheduled for Tuesday morning will be closely scrutinized by markets, as the European Central Bank prepares in July, in the face of inflation, to raise interest rates for the first time in eleven years.
This prospect has revived the risks of the eurozone debt crisis, with increasing interest rate differentials required of northern and southern European countries to borrow and finance their deficits.
The European Central Bank recently had to work to reassure investors by announcing preparations for a new “anti-fragmentation tool” to smooth the notorious spreads, spreads between countries benefiting from good borrowing conditions and more. Any new details in this regard will be closely scrutinized in Portugal.
The tone is likely to be serious. According to European sources, Christine Lagarde informed the heads of state and government of the European Union on Friday at a summit meeting in Brussels, that the war has significantly affected the economy of the eurozone.
The activity suffers from the high prices of gas and imported raw materials, which is fueling inflation, which is expected to continue.