The European Central Bank President Christine Lagarde said on Thursday that inflation is way too high, ''we have to take action,'' adding that the ECB will do whatever is needed and will use all instruments including balance sheet reduction. 

Earlier, she was quoted saying, "we have to be attentive to potential spillovers'' and, "we are not alike and we cannot progress either at the same pace (or) under the same diagnosis of our economies."

"But we are also influenced by the consequences, particularly through the financial markets, and to a lesser extent, through trade as well, because clearly the exchange rate matters and has to be taken into account in our inflation projections," Lagarde said.

More to come...