Lagarde speech: Inflation is projected to remain too high for too long

Eren Sengezer FXStreet

While testifying before European Parliament's Committee on Economic and Monetary Affairs, European Central Bank (ECB) President Christine Lagarde said that inflation is projected to remain too high for too long, per Reuters.

Lagarde reiterated that wage pressures have strengthened on the back of robust labour markets and added that employees are aiming to recoup some of the purchasing power. "The key ECB interest rates remain our primary tool for setting the monetary policy stance," she concluded.

Market reaction

EUR/USD keeps its footing following these comments and was last seen gaining 0.5% on the day at 1.0720.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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