Lagarde Warns Eurozone Inflation Shock Will Last Longer as ECB Keeps Rates Higher - europeanbusinessmagazine.com

14 September 2026 | By Katie Winearls — EBM Newsdesk Analysis The European Central Bank has warned that the eurozone’s latest inflation shock is proving more persistent than previously expected, raising the prospect that interest rates will remain higher for longer as energy prices continue to feed through the European economy. ECB President Christine Lagarde delivered the warning after the central bank raised its key interest rates by 25 basis points last week, taking the policy rate to 2.5% as it attempts to contain an inflation surge driven largely by the continuing Middle East conflict and its impact on oil and energy markets.