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7/8, 2:51 PM (Source: TeleTrader)
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Lagarde: ECB to react in case of 'significant' shift from inflation goal

European Central Bank President Christine Lagarde (pictured) asserted on Thursday that the ECB will take a "forceful" and "persistent action" if the inflation deviates from the 2% target to a "significant" extent.

Answering questions during a presentation of the ECB's new strategic review, Lagarde failed to specify how big of a deviation in either direction the bank would be willing to tolerate. Meanwhile, she suggested that the ECB would have to react if faced "with adverse shock."

"The key commitment we have is our commitment to 2%," Lagarde concluded.

Breaking the News / BU