Lagarde speech: Haven't reached the destination on rates yet

Speaking on the interest rates outlook on Tuesday, European Central Bank (ECB) President Christine Lagarde said that they “haven't reached the destination on rates yet.”

Additional comments

Inflation is too high throughout the eurozone.

Longer inflation stays high, bigger risk if it persists.

The possibility of a recession has increased.

The terminal rate must ensure inflation returns to the 2% goal.

Market reaction

Mixed comments from ECB Chief fail to move the needle around the Euro, leaving EUR/USD hovering above 0.9900. The pair was last seen trading at 0.9905, adding 0.26% on the day.