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MADRID, 26 Sep. (EUROPA PRESS) -
The president of the European Central Bank (ECB), Christine Lagarde, considers that it is "essential" that the aid approved by the governments of the eurozone to help households to counteract high inflation be "temporary and directed".
In her speech this Monday before the Committee on Economic and Monetary Affairs of the European Parliament, Lagarde has indicated that this will limit the risk of raising inflationary pressures. In turn, this will make it easier for monetary policy to ensure price stability.
The central banker has maintained her stance of recent weeks, saying inflation is "too high" and likely to run above the 2% target for an extended period of time.
Regarding the eurozone economy, the ECB expects activity to slow down "substantially" in the coming quarters. This is due to four reasons: inflation is affecting spending and production, demand for services is slowing down, global demand is weakening and this affects European exports, and uncertainty remains very high.
Lagarde has recognized that wage dynamics are very contained, although she has warned that it could accelerate in the face of workers' demands for compensation for inflation.
