The President of the European Central Bank, Christine Lagarde, He reiterated on Friday that the bank’s commitment to price stability remains unwavering and that drivers of inflation are expected to ease over the course of the year. Lagarde said the ECB will take the necessary steps to ensure that they meet their 2.0% inflation target in the medium term, and that monetary accommodation is still needed for inflation to stabilize at the 2.0% target in the medium term. Lagarde added that higher prices have been cutting household incomes and eroding confidence, while supply bottlenecks are causing shortages in the manufacturing sector.

Market reaction

Lagarde’s comments did not provoke any reaction in the market.