'Lagarde: Rate hike justified in all scenarios'

 European Central Bank (ECB) President Christine Lagarde defended the decision to hike interest rates by 25 basis points on Thursday.

Lagarde outlined that the bank discussed three scenarios in total: adverse, severe, and milder; the third one being one that should not be neglected but is still not likely. "The [monetary policy] decision remains robust across three scenarios," she underscored, going on to warn that the energy shock is enduring "longer than what was expected" and that its effect is "broadening" throughout the economy.

Crucially, Lagarde stressed that while there is uncertainty on direct vs. indirect effect in service price increases, the ECB has not yet seen impact on wages.

https://breakingthenews.net/Article/Lagarde:-Rate-hike-justified-in-all-scenarios/66488706