By Marta Vilar – SINTRA, Portugal (Econostream) – European Central Bank President Christine Lagarde said on Tuesday that the inflation target was now reached but that the ECB should remain ‘extremely vigilant’. 

In a panel discussion at the ECB Forum on Central Banking 2025 in Sintra, Portugal, Lagarde did not go so far as to say that the mission was accomplished but said that the ‘target is reached.’ 

The ECB had been able to go through the disinflationary process but was now facing high uncertainty, she said. 

Uncertainty was high, the risk of fragmentation was increasing and geopolitical developments were concerning, according to Lagarde, who said the latter were generating two-sided risks to inflation. 

‘So, we have to continue to be extremely vigilant’, she said. ‘We have to continue to be committed to delivering on our target, and I think we are, at this point in time, in a very good position to do that.’ 

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