ECB's Lagarde: Current inflation spike largely temporary

In an interview with Der Spiegel, Christine Lagarde, President of the Europen Central Bank (ECB), reiterated that the current inflation spike in the euro area is largely temporary.

"The ECB shouldn't overreact to the current inflation spike," Lagarde added and said that a premature tightening could harm the economic recovery and the labour market.

Market reaction

These comments don't seem to be having a noticeable impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.05% on the day at 1.1555.