Reply To: ECB Raises Key Rates 50 bps vs 25 bps Expected Approves Transmission Protection Instrument


Lagarde Opening Statement

We will make sure inflation gets back to target over the medium term
High inflation is a major challenge
Conditions are in place for economy to continue to grow
“inflation pressures have intensified”
“inflation will remain undesirable elevated for some time”
Governing council will retain optionality
Initial signs of inflation expectations above target warrant monitoring
The war is a big downside risk to growth
Wage growth has started to pick up
War and pandemic in China has made supply bottlenecks worse
Near term activity is to be dampened by high energy costs
If demand were to deteriorate it would dampen prices
Risks to inflation primarily tilted to the upside
Prices rises are becoming more widespread