ECB’s Lagarde: Future rate hikes open amid banking turmoil

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — European Central Bank head Christine Lagarde says future interest rate decisions are open after upheaval in the global banking system has left the economic outlook more uncertain. Speaking at a conference Wednesday at Frankfurt’s Goethe University, Lagarde that decisions would depend on whether the numbers shows painfully high inflation is headed convincingly down. She says that means the ECB is “neither committed to raise further nor are we finished with hiking rates.” The open-ended approach is a shift from the ECB’s stance of clearly indicating more rate hikes were in the offing to fight inflation. But bank failures have sent shudders through financial markets due to fears that others may suffer losses from high interest rates.