Open account

ECB's Lagarde: Most measures of longer term inflation stand around 2%

ECB President Christine Lagarde signalled that the bank will stay on hold for now, saying most longer‑term inflation measures are around 2% and highlighting an easing wage tracker as a disinflationary anchor. The ECB left rates unchanged (main refinancing 2.15%, deposit 2.00%) and took a wait‑and‑see approach, warning that fiscal responses should be targeted. The euro initially sold off on the lack of a clear June hike commitment but received some support after hawkish Q&A lines; market pricing still assigns about a 76% chance of a June hike. Overall the statement reduces near‑term tightening odds, giving EURUSD mixed, volatility‑driving implications.

Category

EUR/USD

Sentiment

Mixed

Event

Policy statement

Reading time

1 min