- Lagarde speech: Need to continue hiking cycle until confident that inflation will return to target
Market news
1 June 2023
Lagarde speech: Need to continue hiking cycle until confident that inflation will return to target
European Central Bank (ECB) President Christine Lagarde said in an appearance on Thursday, “we need to continue our hiking cycle until we are sufficiently confident that inflation is on track to return to our target in a timely manner.”
Additional comments
“Inflation is too high and it is set to remain so for too long.”
“Hikes are already feeding forcefully into bank lending conditions.”
“We cannot yet say that we are satisfied with the inflation outlook.”
“A period of catch-up wage growth need not cause unduly persistent inflation over time.”
Market reaction
EUR/USD is looking to 1.0700 on the above comments. The pair is trading at 1.0694, up 0.04% on the day.
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