European Central Bank: Interest rates will remain high ‘as long as necessary’

The head of the European Central Bank says interest rates will stay high long enough to restrict business activity for “as long as necessary” to beat back inflation because upward pressure on prices “remains strong.” Christine Lagarde said Monday that “strong spending on holidays and travel” and increasing wages were slowing the decline in price levels even as the economy in the 20 countries that use the euro currency stays sluggish. The ECB last week raised its benchmark deposit rate to an all-time high of 4% after a record pace of increases. Analysts think the ECB may be done raising rates given signs of increasing weakness in the European economy.