Lagarde Set to Address Inflation Fears Amid ECB Rate Hike
European Central Bank President Christine Lagarde will make a public appearance at an apple festival in Normandy, just two days after the ECB raised its key interest rates by 25 basis points. The exact text of her remarks has not been released ahead of time, but several likely themes are expected to be covered.
The timing and recent context point to Lagarde discussing the rate decision itself. In a post-meeting press conference on Thursday, she described current inflationary pressure as predominantly a supply shock and declined to commit to a specific path for future interest rates.
The ECB raised its key interest rate by 0.25 percentage points to 2.50% on Thursday, citing the conflict in the Middle East as a continued generator of inflation pressures. This marks the second rate hike this year, following a June increase and maintained interest rates until now.