---
title: "Lagarde Defends Data-Led Path Beyond ECB’s Next Half-Point Hike"
description: "European Central Bank President Christine Lagarde affirmed plans to lift interest rates by another half-point next month, saying officials remain determined to return inflation to the 2% goal."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-21-lagarde-defends-data-led-path-beyond-ecbs-next-half-point-hike/"
published: "2023-02-21T17:57:44"
lang: "en-ZA"
word_count: 220
---

# Lagarde Defends Data-Led Path Beyond ECB’s Next Half-Point Hike

> European Central Bank President Christine Lagarde affirmed plans to lift interest rates by another half-point next month, saying officials remain determined to return inflation to the 2% goal.

By Bloomberg · Published 21 February 2023, 19:57 SAST

## Key points
- ECB President Christine Lagarde has stated that their monetary policy path will depend on data, such as inflation and labor costs. Most ECB officials are maintaining a hard line stance on inflation. Some have called to slow the pace of rate hikes, while others have argued for more “significant” increases. Lagarde acknowledged that headline inflation is slowing and said they are closely monitoring wages and negotiated wages. She believes that at this time there is no spiraling of inflation-wages in the Euro area. The ECB will continue to monitor the data to determine their monetary policy path.
- ECB President Christine Lagarde stated that the bank's monetary policy path will depend on data such as inflation, labour costs and projections.
- Lagarde believes that bringing price gains back to the target is “the best thing we can do for the economy”.
- ECB officials maintain a tough stance on inflation, with some calls to slow the pace of rate hikes and comments from hawkish members pushing up market bets on monetary tightening beyond March.
- Lagarde acknowledged that headline inflation is receding and said the ECB is “looking at wages and negotiated wages very very closely”.

## Content

“What comes after that will be data dependent,” Lagarde said in [remarks](https://areena.yle.fi/1-3229465) released Tuesday. “We will look at all numbers — inflation, obviously, labor cost, projections and we will determine what our monetary-policy path will be after that.”

Bringing price gains back to the target is “the best thing we can do for the economy,” Lagarde told Finnish TV during a [non-monetary-policy meeting](https://www.ecb.europa.eu/press/calendars/weekly/html/index.en.html) this week in the Nordic country.

Most ECB officials are maintaining a tough stance as a retreat in headline inflation masks stubborn underlying price pressures. While there have been some calls to [slow the pace](https://www.bloomberg.com/news/articles/2023-02-16/ecb-interest-rates-chief-economist-lane-says-tightening-effect-still-in-pipeline) of rate hikes, comments from the Governing Council’s more hawkish members have pushed up market bets on monetary tightening beyond March.

[Speaking to Bloomberg](https://www.bloomberg.com/news/articles/2023-02-17/ecb-s-schnabel-sees-risk-markets-will-underestimate-inflation) last week, Executive Board member Isabel Schnabel said the ECB remains “far away from claiming victory.” Bundesbank President Joachim Nagel has warned that more “significant” rate increases will be required.

Lagarde acknowledged that headline inflation is receding and said the ECB is “looking at wages and negotiated wages very very closely.”

“It is quite normal that we see at the moment inflation catchup as a key theme of negotiations between unions and employers associations,” she said. “At this point in time, for the whole of the euro area, we don’t see this spiraling of inflation-wages, inflation-wages,” she said.