New Delhi, June 30 -- The head of the European Central Bank defended its June 11 rate hike as justified to ward off real inflationary pressures and said it wasn't just a mere "insurance hike."

ECB head Christine Lagarde said Monday that without the quarter percentage-point increase, inflation could have lingered above the bank's 2% target into 2028.

"Some have characterized our rate increase earlier this month as an 'insurance hike,'" Lagarde said. "I'm sorry to disappoint them. That is not an accurate description. We faced an outlook of rising headline and core inflation."

The central bank for the 21 countries that use the euro raised its benchmark rate earlier in June by a quarter point to 2.25%, the first rate move in a year. Even w...