ECB President says interest rate path remains uncertain
Christine Lagarde says the ECB has not decided on rate hikes as the war impact remains unclear. The economy currently sits between two forecast scenarios.
The European Central Bank has yet to reach a decision on whether to increase interest rates, as the economic impact of the ongoing conflict in Iran remains unclear. Speaking on Bloomberg TV, ECB President Christine Lagarde indicated that the central bank is not ready to commit to a specific monetary policy path while geopolitical uncertainties persist. Market participants have been monitoring the stability of the EUR/USD and the fluctuations in Brent Crude Oil prices, particularly as the potential closure of the Strait of Hormuz threatens to drive up energy costs. Such a development could trigger a fresh wave of inflation across the energy-importing euro zone.
It doesn't predicate that we'll go in one direction or the other and it certainly does not determine a rate path that I can confirm today.
