ECB Chief Says Little Chance Of No Rate Hike

European Central Bank President Christine Lagarde on Monday (February 7) delivered a video speech to the European Parliament, pointing out that since the beginning of 1999, the average inflation rate in the euro area is 1.7%, and the European Central Bank will ensure that prices remain stable. Lagarde said energy prices remained the main reason for the rise in inflation in the euro zone, with more than half of the inflation rate in January (5.1%) directly affected by higher energy prices. She conceded that the inflation outlook for the euro zone is skewed to the upside, especially in the short term, compared with expectations in December. Lagarde stressed that the demand situation in the euro area has not shown signs of overheating similar to other major economies, which means that the current price pressure in the euro area may subside before it takes root, allowing the ECB to achieve 2% medium-term inflation. Target. Lagarde pointed out that while inflation in the euro zone has risen, long-term inflation expectations have not strayed from the 2% target, and survey-based indicators show that inflation will fall back to 2% in 2023, and then remain close to it. 2%, and market indicators also held steady at just below 2%.