Lagarde Warns ECB Rates Won't Follow Energy Prices Lockstep

European Central Bank President Christine Lagarde has made it clear that interest rates will not be directly tied to energy prices. Speaking at a press conference after an Informal Ecofin meeting in Dublin, Lagarde stated that policymakers would assess the broader impact of the energy shock on inflation, growth, and consumption when deciding on future policy moves.

The ECB's decision is based on the uncertainty surrounding the economic outlook, which warrants taking decisions on a meeting-by-meeting basis. According to Lagarde, interest rates do not move in lockstep with energy prices because 'obviously the price of energy and its impact on ...'