Lagarde restates ECB interest rate hike plan as crisis tool takes shape

Lagarde characterized the decision to develop a crisis measure as one that underpins a previous commitment to keep inflation under control

“We intend to raise the key ECB interest rates by 25 basis points at our July monetary policy meeting,” and hike again in September, she told European Union lawmakers on Monday. Picture: Alex Kraus/Bloomberg

European Central Bank President Christine Lagarde restated officials’ intention to raise interest rates in July and September, signalling that concerns over financial-market tensions aren’t derailing the fight against inflation.

The comments on Monday underscored how a showdown with investors in the past week hasn’t affected the Governing Council’s broader monetary policy strategy. Lagarde spoke after an emergency meeting last week where officials accelerated work on a tool to defend the integrity of the euro region.