Lagarde Says Inflation to Stay Too High for Too Long

The ECB has kept interest rates unchanged, confirming its previous inflation outlook. Despite a marked drop in inflation due to base effects, domestic price pressures remain strong. Past interest rate hikes are effectively dampening demand, aiding in reducing inflation. The ECB is committed to achieving a 2% medium-term inflation target and will maintain current interest rates for a sufficient duration. Future policy decisions will be data-driven, ensuring rates remain restrictive as needed to control inflation.

What is the expected trend for inflation in the near future according to the ECB?

What approach will the ECB continue to follow regarding interest rate decisions?