Lagarde thumbs up
  • We’re getting very close to the stage to declare that we have sustainably brought inflation to 2%
  • Still should be very vigilant about services inflation, which is hovering around 4%
  • Some underlying inflation figures are moving in the right downward direction
  • Price levels are not going to return to the good old ways
  • Puzzled by this impression people have that they don’t have as much disposable income
  • Need to be vigilant on wages as well
  • We’re coming close to the end of that process where wages have caught up with prices
  • Hopefully we don't return to the very counterintuitive system of negative interest rates
  • Tit-for-tat retaliation on trade is just bad for the global economy at large
  • It could also turn out to be bad for the US economy, for that matter
  • Full transcript

Just some overview remarks there by Lagarde but her acknowledgement of the disinflation process just means that they're positioning themselves to keep cutting rates going into next year.