ECB’s Lagarde Warns of Impact of Prolonged Energy Shock

European Central Bank President Christine Lagarde says euro-zone inflation should return to the 2% target by the second half of 2027, warning that a prolonged war in Iran, and subsequent impact on energy prices, would be a drag on growth. She made the comments at a news conference in Frankfurt after policymakers raised interest rates for the first time in almost three years, to 2.25% from 2%. (Source: Bloomberg)