Lagarde speech: Surprised by economic resilience
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, announced a 25 basis point increase in key interest rates during the September policy meeting. She attributed the decision to significant financing needs driven by advancements in artificial intelligence. Lagarde emphasized that they closely monitor the bond market, particularly the long end.
She expressed surprise at the economic resilience observed, with post-cutoff data suggesting even higher growth for 2026 than initially projected. Inflation has also been lower than anticipated, especially for food prices. She declined to comment on any foreign exchange interventions. The ECB is responsible for setting interest rates and managing monetary policy within the Eurozone, aiming to maintain price stability by keeping inflation close to 2%.
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