MNI BRIEF: Inflation Could Surprise To Downside, Lagarde Says

While risks to inflation are balanced, they remain fairly large in both directions, European Central Bank President Christine Lagarde told a press conference on Thursday.

Inflation will be higher if wages are higher than currently expected , Lagarde said, although she was clear in noting that inflation would be lower if monetary policy dampens demand more than expected in coming quarters or the economic environment in the rest of the world worsens unexpectedly.

Lagarde, speaking after policymakers decided to leave benchmark policy rates unchanged, said the central bank remained ready to deploy all tools at its disposal to meet its inflation target.