Central Banks

Lagarde Policy Silence Keeps ECB Interest-Rate Debate Raging

Inflation this week may tip balance between hike and pause
Hawkish officials point to sticky price pressures, jobs market

WATCH: ECB President Christine Lagarde tells Tom Keene that the central bank is dealing with shifts in labor, energy and geopolitics. Source: Bloomberg

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By Alexander Weber and Craig Stirling

August 28, 2023 at 4:00 AM UTC

Updated on

August 28, 2023 at 8:13 AM UTC

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Christine Lagarde’s avoidance of a clear signal of intent for European Central Bank policy has just thrown a brighter spotlight on a pivotal week in the euro zone.

While the president observed on Friday that inflation remains undefeated, she didn’t address prospects for the Sept. 14 meeting, giving colleagues scope to publicly debate the need for increasing borrowing costs just as crucial data arrive in coming days.