Lagarde Slams Market Bets for Aggressive Rate Hikes Amid Soaring Energy Costs
ECB President Christine Lagarde pushed back against market bets for aggressive rate hikes due to soaring energy costs. In a recent news conference, Lagarde emphasized that interest rates do not move in lockstep with oil and gas prices because energy price fluctuations also impact other factors such as growth and consumption.
Lagarde's comments came after ECB Vice President Boris Vujcic tempered investor bets by stating that the ECB will consider a wide set of economic indicators when deciding its next moves.
Financial markets currently expect three to four more rate hikes in the next year, partly due to oil and gas prices pushing inflation projections higher. However, Lagarde downplayed concerns about rising government borrowing costs, attributing them to global events rather than local issues.