ECB President Lagarde said the bank has not observed second‑round effects beyond
its projections and is monitoring forward‑looking indicators such as multi‑year
wage deals and firms' wage expectations, but has seen no signs of change. She
said it is premature to pre-judge adjustments to the projections, while noting
that since the September forecasts the energy futures curve and long‑term yields
have risen — which will affect inflation and growth, despite a recent pullback
in oil — and the ECB's updated projections will determine how these factors feed
into medium‑term inflation.
