European Central Bank (ECB) President Christine Lagarde selected the entity’s Board meetings in March and June as “critically important” to judge whether the objectives contained in the forward guidance were reached and, eventually, change the path of monetary policy.
Next month, Lagarde hopes the ECB will be able to better analyze the risks that recent strong inflation readings in the euro zone will have on the bank’s medium-term projections.
“The high surprises provoked unanimous concern” in the entity’s Council, he said.
According to Lagarde, inflationary risks are pointed upwards, especially in the short term, and price pressures should remain higher than expected, affecting the income of Europeans.
She cited energy costs as the main cause of the move, which has become more “broad”, reflecting the greater pressures seen in measures of “breakthrough” inflation.
If the prospect of high inflation contaminates the wage level, it is possible that prices will rise even more, warned the leader.
However, the ECB still does not see “worrying growth” in this metric, which has even moderated recently, according to Lagarde.
Source: CNN Brasil
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