Christine Lagarde: “I think we would (all) do exactly the same thing as our colleague, Jay Powell, does. The same thing.”

First of all, I would discount a little bit of the positioning at the moment because this is typical of negotiating tactics on both sides.

Headline inflation is expected to return to around target towards the end of 2027, supported by the effects of higher interest rates.

We can now focus on stabilising inflation with policy rates as our primary tool.

This was a decision based on what we saw in front of us.