Lagarde speech: Depreciation of the euro has added to inflation

Christine Lagarde, President of the European Central Bank (ECB), is delivering her remarks on the policy outlook and responding to questions from the press following the Governing Council’s decision to hike key rates by 75 basis points in October.

“Supply bottlenecks are easing.”

“Depreciation of the euro has added to inflation.”

“Price pressures are evident in more and more sectors.”

“May need to go beyond normalisation.”

“Many of our assumptions for the downside scenario in projections have not materialised.”

“We must focus on our mandate, price stability, and deliver on that.”

“Strong labour market to support higher wages.”

“Incoming data and recent wage agreements indicate that wage dynamics may be picking up.”

“Most measures of longer-term inflation expectations around 2%.”

“Recent above-target revisions warrant continued monitoring.”

“Risks to growth are clearly on the downside, in particular in the near term.”

“Risks to the inflation outlook are primarily on the upside.”

“We might have to raise rates at several meetings.”

“We’ll be attentive to the transmission of the policy.”

“Reduction of APP portfolio was discussed at retreat.”

“Will open 3 additional windows for TLTRO repayment.”

“We have not finished normalization.”

“We are turning our backs to forward guidance to avoid uncertainty.”

“We’ll have further rate increases.”

“We’ll look at inflation outlook.”

“Did not discuss substantive APP issues today.”

“Would pursue APP discussion, to decide key principles in December.”