Lagarde Downplays Future Rate Hikes Amid Ongoing Supply Shock

Christine Lagarde, President of the European Central Bank (ECB), explained why the ECB raised key rates by 25 basis points at its September policy meeting. According to Lagarde, 'This is predominantly a supply shock.'

Lagarde emphasized that the decision was focused on the current situation and not on predicting future rate paths. She stated that 'Discussion was focused on today's decision, did not debate future rate path.'

Lagarde also highlighted the uncertainty of economic conditions, saying 'Uncertainty can change things almost overnight.'

When asked about anticipating the next move, Lagarde replied, 'Can't anticipate what will be the next move.'