Central Banks

Lagarde Vows ‘Robust’ Policy With ECB Ready to Act as Needed

  • Underlying inflation shows no evidence of trending down
  • President pledges to act for financial markets if necessary
WATCH: ECB President Christine Lagarde speaks at conference of ECB watchers in Frankfurt.Source: Bloomberg
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The European Central Bank will take a “robust” approach that allows it to respond to inflation risks as needed but also aid financial markets if threats emerge, according to President Christine Lagarde.

“Bringing inflation back to 2% over the medium term is non-negotiable,” she told a conference of ECB watchers in Frankfurt on Wednesday. “We will do so by following a robust strategy that is data-dependent and embeds a readiness to act, but that does not entertain trade-offs around our primary objective.”