ECB Lagarde’s speech: Inflation to stabilize to 2% target in the medium term
European Central Bank (ECB) President Christine Lagarde said in her introductory statement before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament during European trading hours on Thursday that the Eurozone inflation is expected to stabilize at the central bank’s 2% target in the medium term.
Remarks
We can now see that our efforts to bring inflation down have been effective.
We continue to expect inflation to stabilise at our 2% target in the medium-term.
We therefore decided to keep key ECB interest rates unchanged at our monetary policy meeting earlier this month.
We will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance.
Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it.
We are not pre-committing to a particular interest rate path.
The ECB pays close attention to households’ inflation perceptions.
Inflation perceptions matter for three reasons.
First, perceptions directly influence economic behaviour.
Second, perceptions of current inflation shape expectations about future inflation.
Third, inflation perceptions can influence public trust in institutions - including the ECB.
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