European Central Bank President Lagarde spoke in an interview with French media outlet Le Figaro published on Sunday.
In brief:
- “I hear some people say that the final rate hike will take place in September. There could be a further hike of the policy rate or perhaps a pause.”
- “Inflation is undoubtedly falling”
- “The second quarter GDP figures for France, Germany and Spain are quite encouraging,”
- “They support our scenario of GDP growth of 0.9% in the euro area this year.”
Lagarde was asked about a wage-price spiral:
- “We are following that very closely, because that would have a huge impact on the services sector. If you look at inflation expectations and the wage increases negotiated collectively and individually, there is no sign of a wage-price spiral emerging.”
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ECB’s President Lagarde