Lagarde hints at another interest rate hike

With the full effects of the ECB’s already historic monetary tightening campaign still materialising, Lagarde reiterated that there’s no clear evidence that underlying inflation has peaked. — Bloomberg

BRUSSELS: European Central Bank (ECB) president Christine Lagarde says inflation pressures remain powerful and borrowing costs will be raised further to tackle them, cementing expectations for another interest rate hike at next week’s meeting.

With the full effects of the ECB’s already historic monetary tightening campaign still materialising, Lagarde reiterated that there’s no clear evidence that underlying inflation has peaked. Food inflation, for one, remains elevated, she said.