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| ECB President Christine Lagarde Warns of Prolonged High Inflation |
Christine Lagarde, President of the European Central Bank (ECB), testified before the European Parliament's Committee on Economic and Monetary Affairs and warned that inflation is projected to remain too high for too long. Lagarde highlighted that wage pressures have strengthened due to robust labour markets and that employees are looking to regain purchasing power.
Lagarde emphasized that the key ECB interest rates remain the primary tool for setting the monetary policy stance. Following her comments, the EUR/USD remained steady, gaining 0.5% on the day at 1.0720.
Lagarde's warning of prolonged high inflation highlights the ongoing concerns facing central banks worldwide. With wage pressures continuing to increase, it remains to be seen how the ECB will respond to balance the economic impact of inflation while maintaining monetary policy. The markets will be closely watching for any potential shifts in the ECB's approach in the coming weeks.
