ECB President Lagarde (Q&A) says tightening of financial conditions seen recently is doing some of the work; notes they are not seeing any second-round effects

President Lagarde's comments suggest that the recent tightening of financial conditions may be alleviating some inflationary pressures without immediate repercussions on wage growth.

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ECB President Lagarde (Q&A) says tightening of financial conditions seen recently is doing some of the work; notes they are not seeing any second-round effects

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  • No intention of corporate leaders to significantly increase wages, the telephone survey recently showed
  • ECB needs time to see how the situation evolves
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This indicates a cautious approach from the ECB, as they are not yet observing second-round effects, which may signal a slower normalization of monetary policy and further scrutiny of economic data ahead.

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