ECB’s Lagarde: Geopolitics, weather factors driving up energy costs, not seeing signs of wages being bid up

European Central Bank President Christine Lagarde said on Friday that geopolitics and weather factors are driving energy prices higher, but that the ECB is not seeing wages being bid up. Lagarde added that demand in Europe is not excessive and, as a result, we are unlikely to face the same inflation as the US. 

Market Reaction

By sticking to her benign view of inflation, Lagarde has not said anything new and hence the euro has not reacted. EUR/USD is currently trading just under 1.1350.