European Central Bank president Christine Lagarde repeated on Friday that it would be appropriate to reduce the current level of monetary policy restriction if the inflation criteria are met. She, however, stressed that the Governing Council is not pre-committing to a particular rate path.
The ECB's boss also said that the disinflation process is expected to continue but noted that risks to the inflation outlook are two-sided, adding that upside risks include heightened geopolitical tensions, higher wage growth and more resilient profit margins than anticipated.