HomeLagarde: Don't assume inflation target is finalized.

Lagarde: Don’t assume inflation target is finalized.

"We are not unhappy with what we have seen," on inflation.Hopes inflation can get back to target sooner than projectedInflation numbers are relatively reassuringWe "absolutely confident" in hitting inflation target sustainably in the course of 2025 but not sure whenWe have to be very sharp in evaluating services inflationEuropean consumers don't consumer as much as AmericansThe pace of cuts is to be determined laterI don't want to speculate on what it would take to cut 50 bpsI don't know where neutral isThe euro is struggling again today alongside the pound. Most of the recent EUR/USD drop was driven by dollar strength but that's not the case today. This article was written by Adam Button at www.forexlive.com.

By admin

October 22, 2024

On inflation: “We are not unhappy with what we have seen.”
Inflation could return to target sooner than expected.
Current inflation numbers provide reassurance.
Confident in achieving inflation target sustainably by 2025, but timing is unclear.
Need to carefully evaluate services inflation.
European consumers spend less than Americans.
Pace of cuts will be decided later.
Uncertain about what it takes to cut rates by 50 basis points.
Unclear on where the neutral interest rate is.

The euro is facing difficulties again today, similar to the pound. The recent drop in EUR/USD was mainly due to dollar strength, but that’s not the case today.

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SourceForexlive