Lagarde: Critical inflation expectations remain anchored at 2%

Christine Lagarde, president of the European Central Bank, said on Friday that crucial inflation expectations are still anchored at 2%. She emphasized the significance of these anticipations and expressed certainty that the inflation figures will change by the year end.

Following statements by Lagarde of the ECB and Powell of the Fed in Jackson Hole, the EUR/USD pair is still consolidating near 1.0800 and has been mostly unchanged for the day. The pair is approaching its sixth consecutive weekly fall on a weekly basis.

Lagarde stated that they would keep a close eye on salary changes. When questioned about altering the inflation objective, she responded that doing so would be inaccurate and detrimental to securing inflation expectations.

Regarding the Eurozone economy, Lagarde stated that German growth is not broken and is demonstrating resilience.