- Lagarde's press conference reflected majority view on governing council
- If there are second-round effects on inflation, monetary policy will have to respond
Well, they've been wrong every step of the way since last year so who's to say they won't be wrong again. But much like the boy who cried wolf, eventually the wolf does come. We'll see if that will happen in spring. However, once again, there has to be a distinction that needs to be made between inflation pressures easing and inflation returning back to 2%. Those are two separate and materially different events.
