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ECB President Lagarde (Q&A) says some inflation upside is a result of base effects from last year's energy costs; inflation is gradually moving back to target, and ECB sees it at target in the medium-term

Lagarde's comments suggest a hawkish tilt, indicating that while inflation has some temporary upside due to past energy prices, the ECB anticipates it will return to target in the medium-term.

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ECB President Lagarde (Q&A) says some inflation upside is a result of base effects from last year's energy costs; inflation is gradually moving back to target, and ECB sees it at target in the medium-term

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This points to a more optimistic outlook for inflation stabilization, which may influence investor sentiment on European bonds and the euro's strength relative to other currencies.

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