MUSALEM said inflation expectations have remained anchored.

ECB Governing Council member Nagel said the ECB will act decisively if necessary to return inflation to its 2% target. Consumer price growth has accelerated again and could continue to rise in the coming weeks, with higher energy costs a key driver. Nagel said medium-term inflation expectations must remain firmly anchored at 2%, and the Governing Council will monitor price developments closely and act decisively when required. He added Thursday’s decision to hold rates was “not easy,” but so far there are no clear second-round effects; keeping that outcome depends on stable inflation expectations. He said this was a key message of yesterday’s rate decision.

Russian Foreign Minister Lavrov has arrived in the United States to attend a G20 ministerial meeting.