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MNI BRIEF: ECB Eyeing Wages, Profits and Productivity -Lagarde

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(MNI) Frankfurt

ECB policymakers eyeing a string of indicators as its considers when to start rate cuts, ECB President says.

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The European Central Bank is not yet “sufficiently confident” that inflation is on a sustainable path towards its 2% target and will focus on wage growth, margin profits and productivity growth to confirm it, President Christine Lagarde said Thursday as she restated her message that policymakers will have more information by April, buy "a lot more by June".

Even if wage growth and profit margins are seem to be in line with the ECB’s target, the sensitivity analysis by the ECB shows that full catch up in wages this year would push inflation to 3% in 2025 and 2.5% in 2026, Lagarde told an ECB Watchers conference in Frankfurt.

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The European Central Bank is not yet “sufficiently confident” that inflation is on a sustainable path towards its 2% target and will focus on wage growth, margin profits and productivity growth to confirm it, President Christine Lagarde said Thursday as she restated her message that policymakers will have more information by April, buy "a lot more by June".

Even if wage growth and profit margins are seem to be in line with the ECB’s target, the sensitivity analysis by the ECB shows that full catch up in wages this year would push inflation to 3% in 2025 and 2.5% in 2026, Lagarde told an ECB Watchers conference in Frankfurt.

Keep reading...Show less