Lagarde speech: We need to act in a determined and sustained manner

European Central Bank (ECB) President Christine Lagarde delivers the Introductory speech on Day 2 of the ECB Forum on Central Banking in Sintra, Portugal.

Key quotes

Inflation in the euro area is undesirably high.

This means moving gradually if there is uncertainty about the outlook, but with the option to act decisively.

The new instrument will have to be effective, while being proportionate and containing sufficient safeguards to preserve the impetus of member states towards a sound fiscal policy.

Measures to preserve transmission could be used at any level of interest rates – so long as they were designed not to interfere with the monetary policy stance.