Europe’s central bank ready to ‘stamp out’ surging inflation

SINTRA, Portugal (AP) — The head of the European Central Bank says it will move gradually to combat soaring consumer prices with interest rate hikes in July and September but will keep its options open to “stamp out” inflation if it surges faster than expected. In a speech Tuesday opening an ECB forum on central banking in Sintra, Portugal, bank President Christine Lagarde used strong terms as policymakers target inflation running at a record 8.1% in the 19 countries using the euro. Lagarde says the bank is using the dual approach to be able to respond to economic uncertainty partly. She says Europe is experiencing the shocks of rising energy and food prices tied to Russia’s war in Ukraine acutely.