The President of the European Central Bank said that raising interest rates in June was the right decision and the impact of supply shocks continues to spread.

European Central Bank President Christine Lagarde said in an interview with Echo that the ECB's decision to raise interest rates last month was correct. "We are confident that we made the right decision," Lagarde said in the interview with the French newspaper on Thursday. "As early as April, the majority of the Governing Council members were ready to make a decision, but at that time we did not have all the necessary information." Just last month, the European Central Bank became the first central bank among the G7 countries to raise interest rates after the outbreak of the Iran war. The ECB explained at the time that the decision to raise interest rates was based on the impact of the energy shock on the entire economy, and that the bank could not tolerate runaway inflation. However, an interim peace agreement reached between the US and Iran has led to a sharp drop in oil prices, eliminating the main driving factor of inflation. The latest data released on Wednesday showed that the eurozone's inflation rate slowed more than expected. Lagarde said that although the second-round inflation effects have not yet emerged, the impact of supply shocks continues to spread throughout the economy.