Lagarde speech: Inflation to return to target towards end of 2027
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to raise key rates by 25 basis points (bps) at the September policy meeting and responds to questions from the press.
Christine Lagarde, President of the European Central Bank (ECB), announced a 25 basis point increase in key interest rates during the September policy meeting. In her post-meeting remarks, Lagarde highlighted the ECB's confidence in resilient growth, strong labor markets, and an improved outlook for the near-term. However, she also noted that employment gains have slowed and exports face competitiveness challenges.
Lagarde emphasized the importance of consumption, public and private investment, and a recovering services sector, which would slightly favor a more hawkish stance in terms of easing policy. Despite this, she guided that headline inflation would remain above target through the first half of 2027, primarily due to energy shocks affecting core and food prices.
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