Lagarde indicates that April remains an active possibility

ECB Signals Possible April Rate Hike

Yesterday, I explored how varying energy price trends could influence inflation across the eurozone and what this means for potential ECB policy moves. President Lagarde’s recent remarks at the ECB Watchers conference provided a significant update: she suggested that an interest rate hike might be on the table as early as the April 30 meeting. This serves as a clear signal that should not be overlooked.

While central banks often highlight their willingness to respond to changing conditions, Lagarde took it a step further by outlining the reasons why prompt action could be necessary. She stressed that monetary policy should address not just the central forecast, but also the risks surrounding it—which currently lean toward higher inflation.