Updated
Updated · Bloomberg · Jul 2
Lagarde Defends ECB's June Rate Hike, Says Majority Was Ready by April
Updated
Updated · Bloomberg · Jul 2

Lagarde Defends ECB's June Rate Hike, Says Majority Was Ready by April

3 articles · Updated · Bloomberg · Jul 2

Summary

  • Christine Lagarde said the ECB was right to raise interest rates in June, calling the move the correct decision in an interview with Les Echos.
  • April was already the point when a large majority of the Governing Council was ready to act, she said, but policymakers still lacked all the information needed to decide.
  • The remarks reinforce that the June increase was a deliberate, data-dependent step rather than a late shift in the ECB's stance.

Insights

Is the ECB's rate hike a necessary cure for inflation or a poison pill for Europe's economy and green transition?
With governments spending billions on energy relief, is the ECB’s rate hike working at cross-purposes with fiscal policy?