Lagarde's silence fuels market speculation as ECB

Ai Huicha, August 28: Last week, European Central Bank President Christine Lagarde avoided sending a clear signal on her policy intentions, which intensified the debate on the central bank's interest rate. Some economists believe the ECB is expected to finally focus on core inflation and raise rates, although there is still much uncertainty over whether the ECB will raise rates in September. However, Berenberg economists led by Holger Schmieding changed their forecasts ahead of Lagarde's speech, raising the probability of the central bank pausing rate hikes to 60% from 40%. Most central bankers have stressed that their decisions depend on data, they said. If real economic data declines and inflation does not surprise upwards in August, it seems more likely that the ECB will keep rates on hold in September.