Breaking the persistence of inflation
· Christine Lagarde, President of the European Central Bank (Euro area (EU))
Summary written by Dark Majestic in its own words · topics: inflation and price stability, climate, energy and nature, labour markets and jobs
CL · Christine Lagarde Wiki · European Central Bank WikiBreaking the persistence of inflationContextSpeech by Christine Lagarde at the ECB Forum on Central Banking 2023 in Sintra, Portugal.
Why it mattersLagarde's Sintra speech signals further hikes as wage-driven inflation persists.
Problems raised- Inflation in the euro area is too high and set to stay high for too long.
- Price pressures are shifting from energy to wages and domestic prices.
- Persistent inflation risks becoming entrenched.
Solutions proposed- Keep raising rates until inflation is on track to 2%.
- Hold rates at restrictive levels for as long as needed.
- Watch wage-sensitive and domestic inflation closely.
Read full speech on ecb.europa.eu ↗More from Christine Lagarde · European Central Bank · all speeches
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