ECB chief Lagarde: We will set rates as high as necessary for inflation; Must keep price expectations anchored
- We are seeing profound changes in the labour market and the nature of work
- Energy transition, climate change is triggering profound transformations in global energy markets
- Likely to experience more shocks emanating from the supply side itself
- If we face both higher investment needs and greater supply constraints, we are likely to see stronger price pressures
- We also need to be open to the possibility that some of these changes could be longer-lasting
- We need to provide clarity on our objective, and on unwavering commitment to deliver on it
- Need to set rates at sufficiently restrictive levels for as long as necessary to achieve a timely return to 2% medium-term target
- Multi-legged approach needed for effective policy