ECB President Lagarde said the bank does not need a stronger policy response to
fallout from the Middle East conflict because inflation is expected to return to
target in the medium term. Speaking to MEPs in Brussels, she said households do
not expect price rises to persist, which supports the view that, with
'appropriate monetary policy action', inflation can fall from above 3% toward
2%. She added there are currently no signs of inflation expectations
de-anchoring or second‑round effects that would require a stronger policy
response.
