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“We should not overreact to episodes of supply shortages or rising energy prices, as our monetary policy does not have the power to directly influence these phenomena.” This is what the president of the ECB, Christine Lagarde, said in a speech the content of which was reported by Reuters.
Lagarde specified that, in any case, “we will closely monitor wage developments and inflation expectations, to make sure that the latter remain anchored at 2%”.
Again, Lagarde reiterated that she believes these “frictions” (referring to the rise in prices) are temporary, and that the inflation flare will subside next year.