European Central Bank President Christine Lagarde said there’s still some work to be done to defeat consumer-price gains that remain excessively rapid.
(Bloomberg) — European Central Bank President Christine Lagarde said there’s still some work to be done to defeat consumer-price gains that remain excessively rapid.
“We have inflation that’s too strong compared to our target, and has been for some time,” Lagarde said at an event Thursday in Paris.
Officials have delivered “a significant amount” as they try to bring it back to the 2% goal from more than three times that now, she said.
“There’s still a little way to go on the path,” Lagarde said. “The length of the path will depend on a number of factors, notably the impact on credit from the financial troubles we saw.”
Lagarde’s remarks chime with other ECB officials who say the most aggressive monetary-tightening campaign in euro-zone history is approaching its end. Even so, another hike is widely expected at the next meeting in two weeks, with the choice likely to be either a quarter- or half-point step.
When asked about reviewing the ECB’s 2% inflation target, Lagarde dismissed any prospect of that in the foreseeable future.
“It’s not the right moment and it’s absolutely not a question,” Lagarde said. “It would be useless and ineffective to have this debate now. We will first meet the target, be certain we have met it sustainably, and then we will be able to look at all sorts of questions.”
(Updates with comment on inflation target in last two paragraphs.)
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