PARIS (Reuters) – Pressures on underlying inflation remain high in the euro zone and there is no “tangible evidence” that a peak has been reached in this area, the president of the Central Bank said on Monday. European Union (ECB), Christine Lagarde.
“The latest data available suggests that indicators of underlying inflationary pressures remain elevated and, while some are showing signs of moderating, there is no hard evidence that underlying inflation has peaked,” he said. she said according to a written transmission of a speech addressed to the Committee on Economic and Monetary Affairs of the European Parliament.
These remarks should support market expectations of further rate hikes this month and in July, despite a slowdown observed in core inflation last month.
“The full effect of our monetary policy measures is beginning to materialize” and should “strengthen in the years to come”, observed Christine Lagarde.
“Our policy rate decisions will continue to be based on our assessment of the inflation outlook in light of new economic and financial data, underlying inflation dynamics and the strength of the monetary policy transmission. “, she added.
(Written by Blandine Hénault, with Francesco Canepa, edited by Nicolas Delame)
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