While speaking at the Hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels, European Central Bank (ECB) President Christine Lagarde reiterated that price pressure remain strong in the Euro area.

Additional takeaways

"Underlying inflationary pressures remain high."

"No clear evidence that underlying inflation has peaked."

"Wage pressures have strengthened further."

"Decisions will continue to be based on our assessment of the inflation outlook in the light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission."

"Our rate hikes are being transmitted forcefully to financing conditions."

"Full effects of our monetary policy measures are starting to materialise."

"Effects of monetary policy tightening on real activity and inflation can be expected to strengthen in the coming years."

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen losing 0.3% on the day at 1.0680.