Lagarde: Difficult to say if inflation is at peak

European Central Bank President Christine Lagarde said on Tuesday it was difficult to say whether or not inflation has peaked in the euro area.

“The minimum that we have to do is to stop stimulating demand,” Lagarde added. These comments don’t seem to be having a noticeable impact on the shared currency’s performance against its major rivals.

At the time of writing, the EUR/USD pair was trading at 0.9967 and earlier recorded 0.9972, where it was up 1.5% on a daily basis. According to Lagarde, The ECB must at a “minimum” stop stimulating the economy through its monetary policy.

Lagarde’;s comment has been seen as a signal for raising interest rates back to “neutral” territory.