ECB’s June rate increase was projection-based, not an ‘insurance hike,’ Lagarde says

European Central Bank President Christine Lagarde said the ECB’s June interest-rate increase, its first since 2023, was driven by the bank’s projections rather than an “insurance hike” designed to guard against runaway inflation. She also said inflation risks have eased, while stressing that policymakers must still take a cautious approach that balances price stability against growth concerns, particularly as volatile energy markets could complicate the outlook.