Lagarde: “We will have to take appropriate action”
Christine Lagarde, President of the European Central Bank, warned about the negative effects of high energy prices and their impact on various sectors of European economies.
“In recent weeks we have begun to see the indirect effects of inflation everywhere,” she said.
“When we start to feel the effects of the second round, which are particularly risks related to wage increases, we will have to take appropriate action,” she added.
Lagarde confirmed that the bank is closely monitoring core inflation in the euro zone, which remains the main indicator of economic health for the ECB Governing Council.
According to the latest information, the United States and Iran have reached an agreement to end hostilities in the Middle East through the so‑called settlement protocol.
Read more about this in the article: The dollar is falling! Is the end of the war in the Middle East? How a turbulent week will affect USD/PLN, EUR/PLN and EUR/USD
“If this news is confirmed by events in the coming days and the signing of the settlement protocol, it will be good news,” Lagarde said.
“We can only accept this with satisfaction, especially if it means reopening and clearing the Strait of Hormuz of mines,” she added.
The European Central Bank raised interest rates in June in response to price increases caused by the war in the Middle East.
As Bloomberg notes, policymakers do not rule out another hike at the July meeting if there is no breakthrough in the conflict between the United States and Iran.
Source: Trading Economics.
Also read: The dollar on a long path to 4 PLN? Expert issued forecasts for USD/PLN and EUR/USD. “The dollar could gain”
See also: Will the dollar surprise again? Expert issued a forecast for USD/PLN and EUR/USD. “It’s hard to believe there will be no more fires”
Euro rate on Monday, June 15
The euro to zloty rate on Monday, June 15 is at 4,24 PLN.
“Our forecast for the zloty remains unchanged,” economists from ING Think said in the latest report.
“We expect limited growth of the EUR/USD rate in the second half of 2026, sustained GDP advantage and expected inflows of EU funds, which justifies keeping the EUR/PLN rate near 4,24. The risk still relates to geopolitical factors and the dovish stance of the ECB,” they added.
The team expects the rate to reach 4,23 PLN within a month and 4,24 PLN, 4,22 PLN and 4,25 PLN over three, six and twelve months.
Chart. Euro to zloty (EUR/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,15 USD.
According to ING Think’s forecast, EUR/USD rates will stay at 1,15 USD for the next three months, then rise to 1,17 USD and 1,20 USD over six and twelve months.
“After the rate hike to 2.25% we expect another hike from the European Central Bank in July or September. However, the stagflation shock will be felt more in the euro zone than in the United States,” we read.
Chart. Euro to dollar (EUR/USD)
Source: Trading Economics.
Also read: Dollar ahead of a breakout? Expert: “Capital will flow back to USD”
See also: Dollar ahead of a “nervous and dynamic” move, euro waiting for a fall? Expert issued a forecast for USD/PLN and EUR/USD
Sources: Bloomberg, ING Think.
