ECB’s Lagarde: Base effect, energy inflation will not result in lasting inflation

Continuing with her testimony before the Committee on Economic and Monetary Affairs of the European Parliament, the ECB President Christine Lagarde said that the PEPP program is effective. Have every reason to believe that base effect, energy inflation not resulting in lasting inflation. Will carefully monitor supply bottlenecks and wages, Lagarde added further.

Market reaction:

The dovish tilt did little to provide any respite to the shared currency or lend support to the EUR/USD pair, which remained on the defensive near the 1.1700 mark.