March 12, 2025 at 08:47AM
Cannot ensure that inflation will always be at 2% level
But must set policy so it converges to the target
In case of large shocks, risk grows that inflation becomes more persistent
Trade fragmentation is likely to lead to larger, more disruptive relative price changes
Cannot provide forward guidance but must be clear about reaction function
Just some token remarks there by Lagarde as she is delivering the opening remarks at an event before other ECB speakers are on the agenda here.
This article was written by Justin Low at www.forexlive.com.
ECB president Lagarde says must set policy so inflation converges to 2% target
