MNI BRIEF: EZ Inflation Expectations Well Anchored - Lagarde

Inflation expectations are currently well anchored, ECB Christine president Christine Lagarde told a panel at the World Economic Forum in Davos, but interest rates need to be sufficiently restrictive to ensure they remain so. Europe also needs to take "rapid steps" in its digital and energy transformation in order to drive growth.

“We are not seeing inflation expectations de-anchoring in any significant way. What we have to avoid is that they would be at risk of de-anchoring" from an inflation rate she said was "way, way to high."

Europe will need to get "really serious, determined and fast on capital [market] union," in order to provide the "phenomenal" level of funding needed to facilitate the transition," she said, a point echoed by Comminsion Executive Vice President Valdis Dombrovskis.