In her appearance before the Economic and Monetary Affairs Committee (ECON) of the European Parliament in Brussels, the President of the European Central Bank (ECB), Christine Lagarde, He reiterated that interest rates will continue to be his main tool to fight inflation.
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“In December, we will also set out the fundamental principles for reducing the holdings of our asset purchase program.”
“It is convenient that the financial balance is normalized over time in a measured and predictable way.”
“How much more rates should fall, and at what speed, will be based on our updated outlook, the persistence of shocks, the reaction of wages and inflation expectations, and our assessment of pass-through.”
“Strong labor markets are likely to support a rise in wages.”
“Fiscal policy must be considered so as not to increase inflationary pressures.”
“Incoming data suggests that wages are picking up, and we will continue to assess the implications.”
“Rate adjustments will take time to hit the economy.”
“Growth is expected to continue to weaken for the remainder of this year and early next year.”
Market reaction
The EUR/USD pair pulled back from the multi-month high that hit near 1.0500 earlier in the day and was last seen at 1.0445, where it was up 0.5% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
