Lagarde: Inflation far too high in Europe

The European Central Bank will keep raising interest rates quickly to get inflation under control as it remains far too high according to ECB President Christine Lagarde.

On Monday, Lagarde was largely repeating the bank’s most recent policy guidance. EUR/USD has found support on the European Central Bank officials’ comments this week so far as they are signaling additional jumbo interest rate rises in Europe. At the time of writing, EUR/USD is moving up on Lagarde’s comments and has rallied from a low of 1.0845 to a high of 1.0926 so far.

“We have made it clear that ECB interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive, and stay at those levels for as long as necessary,” Lagarde said in a speech.

“In other words, we will stay the course to ensure the timely return of inflation to our target,” she added. All in all, ECB’s Laragrde says inflation is far too high and the euro is rallying on the back of the speech.

Key Quotes

Inflation in Europe is far too high, e must bring inflation down.

ECB made it clear interest rates will still have to rise significantly at steady pace.

ECB to stay the course to ensure timely return to inflation target.