ECB’s Lagarde: We have made those future decisions conditional on incoming data

Lagarde painting

  • We have made those future decisions conditional on the incoming data meaning that we can act if we see rising risks of missing are inflation target
  • The energy and supply chain shocks which played a substantial role in last year’s inflation surge are now unwinding.
  • We expect headline inflation to rise again slightly in the coming months.
  • Our monetary policy is in a phase where we need to be attentive to the different forces affecting inflation, but always firmly focused on our mandate.
  • We will need to remain attentive until we have firm evidence that the conditions are in place for inflation to return sustainably to our goal.
  • Given the scale of our policy adjustment, we can now allow some time for them to unfold.
  • This is not the time to start declaring victory.
  • Our assessment is that strong wage growth mainly reflects catch-up effects related to past inflation, rather than a self-fulfilling dynamic.
  • Strong wage growth mainly reflects catch-up effects related to past inflation.
  • We need to remain focused on bringing inflation back to our target and not rush to premature conclusions based on short-term developments

This article was written by Greg Michalowski at www.forexlive.com. Source