Christine Lagarde: Interview with Yomiuri Shimbun

What happened: In an interview with Yomiuri Shimbun, ECB President Christine Lagarde discussed the inflation outlook, second-round effects, and lessons from the 2021 energy shock. Key numbers: October headline inflation was 4%, above the ECB's expectations but in line with market expectations. Why it matters: Lagarde said inflation will remain high in the quarters to come and that the longer it stays high, the greater the risk to the medium-term target. She said the ECB decides policy data-dependent and meeting by meeting, and declined to pre-empt the December decision or the projections.

In an interview with Yomiuri Shimbun, ECB President Christine Lagarde discussed the inflation outlook, second-round effects, and lessons from the 2021 energy shock.

Lagarde said inflation will remain high in the quarters to come and that the longer it stays high, the greater the risk to the medium-term target. She said the ECB decides policy data-dependent and meeting by meeting, and declined to pre-empt the December decision or the projections.