The Eurozone is in a recession, with energy-intensive sectors collapsing at a two-digit rate, but the European Central Bank does not care and continues to increase interest rates, which will further slow down production.
In a speech at the ECB Forum on Central Banking 2023 on “Macroeconomic Stabilization in a Volatile Inflation Environment” in Sintra, Portugal, ECB President Christine Lagarde said the equivalent of “let them eat cake.” “We will have to bring rates to ‘sufficiently restrictive’ levels and keep them there ‘for as long as necessary,’” Lagarde said. (https://www.ecb.europa.eu/press/key/date/2023/html/ecb.sp230627~b8694e47c8.en.html )
