ECB's president Lagarde said Monday that the wage pressures in the Eurozone have strengthened on the back of robust labor markets and employees aiming to recoup some of the purchasing power. According to her, inflation is projected to remain too high for too long.
However, Lagarde noted that the ECB's forecasts are made more uncertain by market tensions, adding the ECB is carefully watching market developments. "We're ready to act as needed on price and financial stability," she said, adding that future moves of the ECB will depend on data.
Also, Lagarde said the ECB's toolkit is equipped to provide liquidity if required but noted that the euro area's banking sector is strong.