FRANKFURT (March 25): Even a "not-too-persistent" overshoot of the European Central Bank's inflation target from the current energy shock may warrant some moderate policy tightening, ECB president Christine Lagarde said on Wednesday. "If we expect inflation to deviate significantly and persistently from target, the response must be appropriately forceful or persistent," Lagarde said. Speaking after Lagarde, ECB chief economist Philip Lane said policymakers would judge which scenario best fits "at every meeting", effectively keeping April or June in play for a first move. "As expected deviations from our inflation target grow larger and more persistent, the case for action becomes stronger," she argued. Financial investors now expect two to three rate hikes from the ECB this year as they see inflation above target for several years.

Source: The Edge Markets March 25, 2026 08:51 UTC