Pause in interest hikes is possible: "It's a decisive maybe"

The European Central Bank (ECB) might decide not to raise interest rates at its next policy meeting in September. That decision will depend on the available macroeconomic data at the time, president Christine Lagarde has said in a comment on the ECB's latest interest rate increase announced on Thursday.

Lagarde commented that she wanted to "break excessive inflation". But when asked if the ECB still had much to do to reduce inflation, the Frenchwoman admitted that it was too early to tell. "Do we have more ground to cover? At this point in time I wouldn't say so," Lagarde said, while stressing that the ECB's decisions will depend on the data available in September. "There is the possibility of another hike. There is the possibility of a pause. It's a decisive maybe."

"Do we have more ground to cover? At this point in time I wouldn't say so"

Even if the ECB leaves rates unchanged in September after nine consecutive hikes, that is no guarantee of an end to rate increases. "We look at the data again at every meeting," Lagarde reiterated.

She further warned that Russia's cancellation of the grain deal could cause higher food prices, fuelling inflation. However, geopolitical tensions could also cause a downturn in global trade.



ECB president Christine Lagarde © PHOTO Daniel ROLAND / AFP

Related news:

Website preview
ECB raises interest rates to 23-year high, future hikes possible
The European Central Bank (ECB) will raise the three key interest rates by 25 basis points from 2 August, it announced on Thursday. It is the ninth consecutive raise and the third 0.25bp raise in a row, after May and June.

Get updates in your mailbox

By clicking "Subscribe" I confirm I have read and agree to the Privacy Policy.


Belga News Agency delivers dependable, rapid and high-quality information 24 hours a day, 7 days a week, from Belgium and abroad to all Belgian media. The information covers all sectors, from politics, economics and finance to social affairs, sports and culture, not to mention entertainment and lifestyle.

Every day, our journalists and press photographers produce hundreds of photos and news stories, dozens of online information items, plus audio and video bulletins, all in both national languages. Since the end of March 2022 English has been added as a language.

For public institutions, businesses and various organisations that need reliable information, Belga News Agency also offers a comprehensive range of corporate services to meet all their communication needs.


Arduinkaai 29 1000 Brussels