ECB Raises Rates 25 Basis Points as Lagarde Says No Future Policy Path Was Discussed

According to Wallstreetcn, the European Central Bank raised interest rates by 25 basis points, in line with expectations, and ECB President Christine Lagarde said the decision was unanimous. Lagarde said there was no discussion of any future policy path or the likelihood of one scenario or another, as the ECB was strictly following its established policy framework. The ECB also raised its inflation forecasts for the next two years and said 2028 inflation is expected to reach 2.1%, while Lagarde said the inflation outlook risks are tilted to the upside. The ECB raised its 2026 and 2027 GDP growth forecasts and left its 2028 GDP growth forecast unchanged, while Lagarde said growth risks are tilted to the downside. She also said an energy shock could intensify further and its impact on other prices and wages could be stronger than currently expected.