ECB expects economic activity to slow,interest rates to increase further

BRUSSELS, Sept. 26 (Xinhua) -- The European Central Bank (ECB) expects economic activity in Europe to slow down substantially in the coming months, due to skyrocketing prices, decreased spending power and overall uncertainty, ECB President Christine Lagarde said on Monday.

Addressing a hearing of the European Parliament's Economic and Monetary Affairs Committee, Lagarde said: "We expect to raise interest rates further over the next several meetings, to dampen demand and guard against the risk of a persistent upward shift in inflation expectations."