ECB's Lagarde: Inflation remains too high

<ul><li>We are committed to reaching inflation target come what may</li><li>We cannot waver, cannot declare victory yet</li><li>Need to bring rates to "sufficiently restrictive" territory</li><li>Need to communicate clearly that we will stay at those levels for as long as necessary</li><li>Have not yet seen the full impact of the cumulative rate hikes since last July</li><li>Not likely to say with full confidence that rates have peaked</li></ul><p>In essence, her hawkish remarks here are brushing aside the setback seen in the economic data since the end of last week. But as mentioned earlier, the ECB can't show signs of weakness just yet – not least when they still have one more rate hike to go in July at the minimum.</p>

This article was written by Justin Low at www.forexlive.com.