Christine Lagarde, ECB president, said the neutral rate, or r-star, has limited practical value in current policy decisions because it depends on a shock-free world. ECB staff estimate the nominal neutral rate at 1.75% to 2.50%, while the deposit facility rate recently reached 2.50% after a 25 basis point increase. Lagarde said on June 11 that the Governing Council had not discussed the neutral rate or its range during deliberations. Instead, she has emphasized the basics of monetary policy: traditional rate settings, data-dependent decisions and measured responses to incoming signals. Energy-market disruptions linked to Middle East tensions continue to affect eurozone inflation, and the ECB’s June 2026 Sintra Forum messaging called for measured rate adjustments. The approach leaves the endpoint for rates less predictable, with future energy-price developments potentially affecting the ECB’s next moves.