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Lagarde: Terminal Rate Must Adhere To Inflation Returning Durably To Target

ECB
  • ECB'S Lagarde says we will not let this phase of high inflation feed into economic behaviour and create a lasting inflation problem.
  • Lagarde says if there were evidence that high inflation risked de-anchoring inflation expectations, then the policy rate that is compatible with our target would lie in restrictive territory.
  • Lagarde says where rates ultimately settle, and the size of the steps that we move in, will depend on how the inflation outlook evolves as we proceed.
  • Lagarde says inflation expectations remain relatively well anchored across a range of measures.
  • Lagarde says moving faster at the start of the hiking cycle clearly conveys our commitment.
  • Lagarde says the terminal rate at which our hiking cycle ends must be compatible with inflation returning durably to our target. (Reuters News)

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