Lagarde: We will very likely hike again in July

<ul><li>If baseline stands, we will likely hike in July</li><li>We still have ground to cover</li><li>We're not seeing enough tangible evidence of stabilizing domestic inflation</li><li>We're looking at as many indicators as we can</li><li>Q2 was not great for manufacturing</li><li>The European economy is 'stagnant at best'</li><li>Manufacturing does not give a great hope for a strong recovery</li><li>Our baseline does not include a recession</li><li>Transmission of mon pol will be slower because there are more fixed-rate mortgages than 15 years ago</li><li>Resilience has been the theme so far</li><li>Interest rates are our primary tool (not unwinding QE)</li><li>APP reinvestment will end soon</li></ul><p>Lagarde didn't offer anything new that we haven't heard in recent comments.</p>

This article was written by Adam Button at www.forexlive.com.