MNI BRIEF: Lagarde Says Q4 Wages Encouraging, Need More Data

While fourth quarter wage data are encouraging, the European Central Bank needs more confidence that the disinflationary process will be sustained before easing policy, President Christine Lagarde said today.

Many sectors and employees are covered by wage negotiations which will only be completed in Q1, Lagarde told a press conference following today’s informal Eurogroup meeting in Ghent.

“Those numbers - especially if they continue to be encouraging – will be important for us to assess going forward in order to reach confidence.” (See MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)

The ECB will monitor multiple data points, including profits, expectations and bank lending surveys, and will remain data dependent, Lagarde said.