Lagarde Says Data Will Tell if December Rate Hike Needed
- On Thursday, President Christine Lagarde announced The European Central Bank is examining indicators to determine if an interest rate hike will be warranted in December.
- Euro zone inflation reached a three-year high of 4% in October, driven by Energy and food costs, prompting Analysts to expect further price increases in coming months.
- The ECB maintained its key deposit rate at 2.5% last week, yet influential heads of the German and Italian central banks have already signaled another move in December may be likely.
- Lagarde cautioned that disentangling supply-driven and demand-driven shocks requires "subtlety so that you do not apply the tool like a hammer" to avoid letting inflation expectations run away.
- Central bank staff will publish economic projections next month to guide the decision, while Lagarde prepares to step down on Feb 7, 2027, months ahead of her formal mandate end.
12 Articles
12 Articles
ECB's Lagarde says data will tell if December rate hike needed
The European Central Bank (ECB) is analysing economic data to assess whether an increase in the interest rate in the euro area could be justified next month, said the president of the institution, Christine Lagarde. Exclusive material for subscribers. To have full access, access the link of the subject and register.
ECB President Lagarde Warns of Persistently High Inflation Across Europe in Coming Quarters
European Central Bank (ECB) President Christine Lagarde has warned that inflation across the euro area is expected to remain elevated over the coming quarters, highlighting mounting uncertainty over the economic outlook and the potential implications for price stability.
The president of the European Central Bank warns that any decision will depend on the next economic data. Ukraine’s war, energy tensions and trade fragmentation threaten to alter Frankfurt’s plans.
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