ECB's Lagarde: Inflation drivers are to fade over the medium-term

Remarks by ECB president, Christine Lagarde

• Inflation rates to increase further until year-end
• ECB must not rush to prematurely tighten policy
• Need to reach 2% price target on a durable basis
• As positive demand forces gain strength, inflation outlook will be better than before the pandemic

She's maintaining that inflation pressures are temporary in nature and that the ECB must "nurture" the recovery while maintaining a more accommodative policy stance.

Nothing out of the ordinary from Lagarde and I would expect this stance to continue until the ECB pledges more support for bolstering APP purchases next year.