European Central Bank President's president Christine Lagarde said that ECB's determination on inflation is there and strong. "Based on the current baseline, the ECB has more ground to cover," she added. According to her, without recent financial tensions, the ECB would have indicated that additional hikes are required.
The ECB's president, however, acknowledged that demand might be affected by financial constraints that might do some of the work that would otherwise be done by monetary policy.
Lagarde also said that ECB is confident that Eurozone banks' capital and liquidity positions exceed regulatory requirements.