In a speech, ECB President Christine Lagarde said, discussed two considerations for monetary policy, the “destination” and the “pace” to get there.
As for the “destination”, she said, “as we move forward, we will reassess whether a normalization strategy is sufficient to bring us back to 2% inflation over the medium term,” hinting that interest rate could go into restrictive region.
Meanwhile, the “appropriate pace of future rate increases will be decided on a meeting-by-meeting basis.”
