Lagarde sees a moderate interest rate hike by the ECB as justified

Lagarde sees a moderate interest rate hike by the ECB as justified

Inflation in the euro zone has not yet led to dangerous spikes, so moderate tightening of monetary policy by the European Central Bank remains justified, ECB chief Christine Lagarde told the European Parliament's Economic and Monetary Policy Committee. "We expect further acceleration in inflation, but so far we see no signs that it is becoming sustainable," she said. "At this point, there is no evidence that the increase in energy prices translates into higher wages."