ECB President Lagarde Signals Continued High Inflation and Unlikely Rate Policy Shift

European Central Bank President Christine Lagarde stated that Eurozone inflation is expected to remain elevated in the coming quarters, indicating that significant changes would be required to deter policymakers from another interest rate hike in December. While core inflation held at 2.5% in October, Lagarde emphasized that the ECB would scrutinize granular components, particularly wage metrics, before deciding on a potential 25-basis-point increase.