ECB's Lagarde says gradual action is right as inflation pressures persist

• Growth is proceeding across most countries and sectors, and the ECB expects that expansion to be maintained.
• The manufacturing sector is showing solid performance.
• Labour market conditions remain strong.
• The outlook remains subject to considerable uncertainty.
• Major technological advances have not lowered joblessness, though the final assessment is not yet clear.
• The ECB sees higher inflation ahead but no evidence that it is becoming entrenched.
• The inflation projections for 2027 and 2028 are higher than what was forecast a few months ago.
• The central bank remains on the "middle path" for monetary policy that it outlined earlier this year.
• "We view a 'measured response' as appropriate to keep inflation in check," Lagarde said.
• A measured response means that even though the shock is too large to merely look through, a gradual approach is seen as appropriate to contain inflation.

The euro slipped 25 pips to 1.1364 on Thursday, hitting its lowest level of the session after the remarks.