MNI BRIEF: No Signs Yet Of Second-Round Inflation - Lagarde

The European Central Bank is not yet seeing second-round inflation effects and has some time to take stock of incoming information, ECB President Christine Lagarde said after it left rates on hold on Thursday.

"We are not seeing second-round effects. We are seeing direct effects, indirect effects but not second-round effects. We are receiving inconsistent information. There are no Intentions to significantly raise wages. Financial tightening is happening. For all these reasons, we want to give ourselves time,” she said.

Lagarde said markets understand the ECB's reaction function well, and that this, along with a tightening of financial conditions, helps to give policymakers more time. However, she said, "directionally, I know where we are going, but there can still be big changes."