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Lagarde: The European Central Bank may revise inflation outlook in June

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Gold Financial reports that on May 25th, European Central Bank President Lagarde stated that the European Central Bank is very likely to raise inflation forecasts at the policy makers' meeting next month. She said on Sunday that the forecast of a 2.6% increase in prices this year made in March "may be revised," and added that the situation "has changed since then." Her remarks confirmed signals recently sent by policymakers, including Governing Council member De Marco. De Marco, in an interview, said that the forecast issued shortly after the outbreak of the Iran war might be overly optimistic. Lagarde declined to specify whether this revision would lead the European Central Bank to raise interest rates on June 11. "The current situation is so uncertain that we must examine all available data, assess how the economy will develop over the next few quarters, determine whether action is needed, and what impact this will have in the medium term," she said. "Our target is 2% in the medium term." (Jin10)
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