ECB’s Lagarde Says Underlying Inflation Pressures Remain Strong

The European Central Bank is ready to act if needed in light of elevated inflation, President Christine Lagarde said.

(Bloomberg) — The European Central Bank is ready to act if needed in light of elevated inflation, President Christine Lagarde said.

“Resilient labor markets and strong wage growth, especially in advanced economies, suggest that underlying inflationary pressures remain strong,” she said in Washington, where she’s attending spring meetings of the International Monetary Fund and the World Bank.

Reiterating the ECB’s most recent stance, Lagarde also said:

“We are monitoring current market tensions closely and stand ready to respond as necessary to preserve price stability and financial stability in the euro area”
“The euro area banking sector is resilient, with strong capital and liquidity positions”
“In any case, our policy toolkit fully equips us to provide liquidity support to the euro area financial system if needed and to preserve the smooth transmission of monetary policy”
To read full statement, click here

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