Overview
- Christine Lagarde told Bloomberg TV the European Central Bank has not chosen a rate move because the war’s impact on the euro-area economy is still unclear.
- She said the current outlook sits between the bank’s baseline forecast and its harsher adverse scenario.
- The ECB’s severe scenario, published last month, projected 4.8% inflation next year if energy costs rise much further.
- Her remarks cooled market bets on a near-term rate hike that had grown after the Strait of Hormuz closure pushed fuel prices higher.
- Lagarde rejected talk of stepping down early and said she would not leave the job.