ECB President Lagarde (Q&A) says decision was unanimous to raise rates

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ECB President Lagarde (Q&A) says cannot say whether services inflation increase is attributable only to direct or also to indirect effects

ECB President Lagarde (Q&A) reiterates that, given that the level of uncertainty, policy will be set on a data-dependent, meeting-by-meeting basis, with no pre-commitments

ECB President Lagarde (Q&A) says decision was unanimous to raise rates

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  • Did not discuss alternatives
  • Today's decision was not an 'insurance' move
  • Talks were predicated on energy shock
  • Seeing some signs of Middle East cost increases
  • Indirect costs from the war are also showing up
  • ECB has updated scenarios; will publish a 'milder scenario' as well
  • Today's decision was robust across all three scenarios considered (adverse, severe, milder)
  • If we were not taking this very obvious policy decision, we’d be north of our inflation target at end of projection horizon

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