European Central Bank President Christine Lagarde has forcefully defended the bloc’s recent interest rate increase, characterizing the move as a "solid decision" that remains unshaken by subsequent market developments.
In remarks reported by Cincodias, Lagarde stated that nothing observed since the policy shift has caused her to question the validity of the tightening step.
The comments serve as a direct rebuttal to growing speculation that the ECB might pause or reverse course amid concerns over financial stability.
Lagarde explicitly dismissed fears that further rate hikes could trigger instability, reinforcing the central bank’s willingness to prioritize price stability over short-term market comfort.
This hawkish posture aligns with earlier signals that the ECB is prepared to raise rates if necessary to anchor inflation expectations.
The defense comes against a backdrop of persistent inflationary pressures, partly fueled by geopolitical tensions in the Middle East.