What changed
SHE DID IT!
ECB PRESIDENT LAGARDE AND HER COLLEAGUES RAISED INTEREST RATES FROM 2.0% TO 2.25%. HEADLINE INFLATION IS AT 3.2%.
THE REASON: A RESPONSE TO A 'MAJOR ENERGY SHOCK' BUT AT THE SAME TIME A MOVE THAT WAS 'ROBUST ACROSS A RANGE OF SCENARIOS.'
THIS IS THE SAME ECB PRESIDENT WHO LIFTED RATES FROM -0.5% TO 0.0% IN 2022, ONLY AFTER EUROZONE INFLATION HAD SPIKED TO ABOVE 8%.
AT THAT TIME, THE ECB AND LAGARDE FIRMLY BELIEVED THAT INFLATION WAS TRANSITORY. APPARENTLY, IN 2022, THERE WAS NO R