We continue to expect inflation to stabilise at our 2% target in the medium-term – Lagarde

2026-02-26 08:48:00

• We can now see that our efforts to bring inflation down have been effective
• We continue to expect inflation to stabilise at our 2% target in the medium-term
• We therefore decided to keep key ECB interest rates unchanged at our monetary policy meeting earlier this month
• We will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance
• Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it
• We are not pre-committing to a particular interest rate path
• The ECB pays close attention to households’ inflation perceptions
• Inflation perceptions matter for three reasons
• First, perceptions directly influence economic behaviour
• Second, perceptions of current inflation shape expectations about future inflation
• Third, inflation perceptions can influence public trust in institutions – including the ECB
• Full transcript

This article was written by Justin Low at investinglive.com.