Lagarde Q&A: We are not at the destination, a hike in July is likely

• We're not thinking about pausing
• Are we done? No
• We need to be confident that core inflation is heading down
• We are not satisfied with the inflation outlook
• I don't want to comment about the terminal rate. We will know when we get there
• Unless there is a material change, we will hike in July
• Very broad consensus behind decision
• Under current parameters, 2.2% inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term in 2025 isn't satisfactory
• The indirect cost of energy price rises will continue to fade
• We decided to let APP move into a run-off mode

EUR/USD is near the post-statement highs but there's an element of USD-weakness at work as well. Last at 1.0873.

Update: The press conference is over. I don't know if we learned much here but a hike in July is only priced at 68% and that sounds too low to me. I'd comfortably pencil in two more hikes.