No need for ‘forceful’ rate rises: Lagarde

BRUSSELS: Eurozone inflation is under control and uncertainty has been eased by US-Iranian efforts to end the war, reducing the need for “forceful” rate rises, ECB President Christine Lagarde said Monday.

The European Central Bank this month raised rates for the first time since 2023 in what was seen as a move to reassure markets that it would keep a lid on inflation as the near total closure of the Strait of Hormuz led to an energy price shock. Last week, Tehran and Washington signed a memorandum of understanding laying the groundwork for negotiations, after nearly 40 days of fighting that was followed by a shaky and often-broken ceasefire.