ECB President Lagarde (Q&A) says interest rates are the best tool that the ECB can use

Lagarde's statement reinforces the ECB's commitment to using interest rates as the key mechanism for monetary policy. This suggests a hawkish stance, potentially influencing market expectations for future rate hikes and providing support for the euro against competing currencies. Overall, it signals the ECB's readiness to address inflation concerns, which could impact both fixed income and equity markets across Europe.