MNI BRIEF: Gradualism Key For ECB Until Uncertainties Clear

Gradualism and optionality remain at the heart of European Central Bank policy ahead, President Christine Lagarde said Wednesday, although she accepted gradualism would take a back seat if needed as the current uncertainties cleared. Lagarde said the ECB had been very clear in indicating what would happen at the July meeting and financial markets understood that stance.

Speaking at the ECB's Sintra summer forum, Lagarde said she didn't see the eurozone returning to an era of low inflation. But she did say the central bank would be closely watching the euro zone CPI data to be published Friday, as any big variations from forecasts would be of note to teh data-dependent central bank.