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.

forecasts showing inflation remaining above the ECB’s 2 per cent target without further policy action...

I think we're yet to feel the pain.

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