Central Banks

Lagarde Says Sustaining ECB Rate at 4% Should Help on Prices

  • Major shocks would mean a need to revisit that, she says
  • ECB president speaks at event hosted by Financial Times
ECB's Lagarde Says Keeping Rate at 4% Should Tame Prices
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European Central Bank President Christine Lagarde said that keeping the deposit rate at 4% should be enough to tame inflation, but officials will consider raising borrowing costs again if they need to.

Weeks after policymakers refrained from a further increase for the first time since their tightening cycle began last year, she signaled to an event organized by the Financial Times that the central bank is gaining confidence that current monetary settings should do the trick.