ECB President Lagarde (Q&A) says core inflation is a key consideration, and it is following a path the ECB had anticipated; path is taking us to target

• Emphasises that European leaders are meeting next week to examine competitive reforms; ECB statement always refers to welcoming strengthening the Euro area economy
• In anticipation of that meeting, ECB has given a checklist to the leaders, it is what ECB regards as likely measures to enhance growth and productivity
• Reforms must be deepened

Lagarde's emphasis on core inflation tracking as expected signals that the ECB is maintaining a steady course towards its inflation target, which may alleviate market concerns about more aggressive tightening. Her remarks about upcoming meetings on competitive reforms suggest a dual focus on monetary policy and structural economic improvement, hinting at a supportive backdrop for the Eurozone's growth. This could influence expectations for future rate decisions and the Euro's strength against other currencies.