European Central Bank President Christine Lagarde stated that inflation expectations should not change. People should be confident that price growth will return to the target level.
On Friday in Bangkok, she said that even in conditions of uncertainty, central banks should follow monetary policy to keep expectations linked to the target level.
At a conference organized by the Bank of Thailand and the Bank for International Settlements, Lagarde said that the best thing central banks can do in current conditions is to inform the public that in all scenarios inflation will return to its medium-term target on time.
The last ECB meeting of the year will be on December 14-15. It is under everyone's attention, as officials will decide whether to raise interest rates for the third time in a row by 75 basis points or ease the rate to half a point. Last month, inflation slowed for the first time in 1.5 years, causing a small move.
At the beginning of the week, Lagarde said that a peak in price increases would cause her great amazement. At the same time, some of her opponents at the ECB say that they are worried about prematurely ending the campaign of bringing inflation back under control.