Lagarde speech: Still long way to go until inflation is squeezed out of economy

European Central Bank (ECB) President Christine Lagarde said over the weekend that interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis.

Key quotes

There is still a long way to go until inflation is squeezed out of the economy. 

It will not be an entirely smooth ride.

We still need to have our foot on the brake for a while, even if we are not pressing down as hard as before. 

Interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis.

Market reaction  

At the time of writing, EUR/USD is trading 0.11% higher on the day at 1.1407.