Inflation in the eurozone will gradually decline this year as key levers, such as energy prices and supply bottlenecks, are expected to subside, European Central Bank (ECB) chief Christine Lagarde told France Inter radio.
“They will stabilize and gradually decline in the course of 2022,” he said.
Asked about the policy of dealing with inflationary pressures, Lagarde reiterated that the ECB does not need to act as much as the US Federal Reserve (Fed), due to the difference in the economic situation of the two regions.
“The cycle of economic recovery in the United States is ahead of that in Europe. “Therefore, we have every reason not to act as quickly and violently as one might imagine the Fed would act,” he said, adding that inflation was also higher in the United States.
“But we have started to react and we are obviously ready to react with monetary policy measures if the numbers, the facts, the facts demand it,” he added.
Commenting on recent trends in Eurozone bond yields, with the yield on the German 10-year bond becoming positive for the first time since 2019, Lagarde said: “If yields rise again, it means that the fundamentals of the economy are improving.” .
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