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MNI BRIEF: ECB Not Committed To September Policy Move- Lagarde

(MNI) LONDON
(MNI) London

Having hiked for nine consecutive meetings, sending benchmark borrowing costs to the highest level in 22 years, the European Central Bank will watch incoming data before deciding whether a further rate increase is needed at its September meeting, President Christine Lagarde said on Thursday.

Speaking at the post-meeting press conference, Lagarde said before any decision, the "burden of proof will be on the data". There is little yet in the way of second-round inflation effects, but she warned that upside risks to prices remain, mainly linked to any escalation of the war in Ukraine. (See MNI SOURCES: Data Deluge Clouds Early ECB September Rate Call)

Policymakers have no set decision yet beyond reaching the 2% inflation target in a timely manner. The Governing Council is open minded on September, Lagarde said, adding: “There is a possibility of a hike, there is a possibility of a pause -- it’s a decisive maybe”

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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