ECB looking at indicators to see if December hike needed, Lagarde says
TLT•The European Central Bank is assessing indicators to determine whether an interest rate hike is warranted in December, President Christine Lagarde said. The ECB held its deposit rate at 2.5% last week.
1. December decision
The European Central Bank is watching indicators to assess whether it should raise interest rates next month, outgoing President Christine Lagarde said. The bank held its key deposit rate at 2.5% last week, while several policymakers have signalled a December move may be likely.
2. Economic pressures
Lagarde said energy costs were bringing growth down and prices up, while investment demand linked to artificial intelligence was helping the euro zone economy become more resilient. She said the ECB must distinguish supply- and demand-driven shocks and guard against inflation expectations rising and inflation spreading through the economy.
