ECB President Lagarde confirms no discussion of alternative policy moves amid upside inflation risks and downside growth concerns.
The European Central Bank increased its key interest rates by 25 basis points at its June meeting, citing persistent upside risks to inflation. President Christine Lagarde stated the decision was robust across multiple economic scenarios and excluded discussions of alternative measures or insurance hikes.
Lagarde highlighted downside risks to growth, including the Middle East conflict and potential energy price spikes, which could further elevate inflation. The ECB also noted spillover effects from indirect costs tied to geopolitical tensions, reinforcing its cautious stance.
Markets await further signals on the ECB’s policy trajectory, with inflation dynamics and energy prices remaining critical factors.