- We cannot say yet that we are satisfied with the inflation outlook
- Need to stick with rate hikes until we are sufficiently confident that inflation is on track to return to 2% target in a timely manner
- Inflation is too high and it is et to remain so for too long
- Rate hikes are already feeding forcefully into bank lending conditions
A timely message from Lagarde after the euro area inflation data earlier. This just rebuffs the market pricing as highlighted in the post here. EUR/USD is now flattish at around 1.0690 as the dollar’s earlier gains are also snuffed out a little on the session.