ECB President Christine Lagarde on Wage Growth and Inflation

In a recent address to the European Parliament, ECB President Christine Lagarde shared insights on the current economic landscape, particularly focusing on wage trends and inflation within the euro area. Lagarde noted that while wage growth remains high, it is showing signs of moderation as anticipated.

She also touched upon the potential impact of global trade tensions on the Eurozone's inflation outlook, suggesting that such factors could introduce a degree of uncertainty. Despite these challenges, Lagarde expressed confidence in the ECB's ability to steer inflation back towards its 2% medium-term target within the year, acknowledging the presence of both upside and downside risks.

Reaffirming the ECB's commitment to combating inflation, Lagarde emphasized the central bank's approach to making decisions on a meeting-by-meeting basis, ensuring flexibility and responsiveness to economic developments.