European Central Bank President Christine Lagarde said Monday that the euro area inflation is to remain higher for longer than anticipated, but will moderate in coming months, and it was unlikely that interest rates would be raised next year.
"If energy prices keep rising or supply constraints persist, inflation may remain higher for longer than we currently anticipate," Lagarde said in a virtual hearing of economic and monetary affairs committee of the European Parliament.
"Overall, we continue to foresee inflation in the medium term remaining below our new symmetric two per cent target," she added.
Policymakers do see wage growth next year potentially rising somewhat more than this year, but they assessed that the risk of second-round effects remains limited, Lagarde said.
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