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Lagarde Gives No Indication Over September Rate Move

ECB

Lagarde speaks in an exclusive interview with Nikkei, highlights:

  • Lagarde expressed concern over rising prices in the eurozone, saying, "There are factors that can induce significant upside risks to the inflation outlook."
  • The ECB has to "be extremely attentive to those potential risks ... in particular, in relation to wage increases in various European countries,"
  • "we still have more ground to cover," suggesting the bank would tighten monetary policy further.
  • Lagarde gave no indication of a September interest rate hike, which has become a topic of discussion. She also declined to say whether the bank would shrink its balance sheet faster to enhance the tightening effect.

Full Lagarde interview here: https://asia.nikkei.com/Editor-s-Picks/Interview/E...

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