Lagarde says Unlikely ECB Will be Able to State That Peak Rates Have Been Reached

ECB's Lagarde gives the opening introductory speech at the ECB's policy conference in Sintra.

Most notable highlight for markets: "My intention is not to signal any future decisions"

Other notable points include:

• We have not yet seen the full impact of the cumulative rate hikes
• Our job is not done
• The level at which rates peak will be state-contingent. It will depend on how the economy and various forces I have described evolve over time.
• It is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached
• First, we need to bring rates into “sufficiently restrictive” territory to lock in our policy tightening.
• Second, we need to communicate clearly that we will stay “at those levels for as long as necessary”.

Full Lagarde speech here.