Lagarde speech: Unlikely that ECB will state with confidence that peak rates have been reached

European Central Bank (ECB) President Christine Lagarde is delivering introductory remarks on day two of the ECB Forum on Central Banking, in Sintra, on Tuesday.

Key quotes

We must ensure that inflation expectations remain anchored as the wage catch-up process plays out.

We have not yet seen the full impact of the cumulative rate hikes we have decided on since last July.

 if firms were to regain 25% of the lost profit margin that our projections foresee, inflation in 2025 would be substantially higher than the baseline – at almost 3%.

It is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached.