ECB President Christine Lagarde has said that the central bank will take monetary action at the right time to achieve its 2.0% inflation goal over the medium term. In the near term, she added, inflation is likely to remain high and bottlenecks will still persist for some time. There are some signs these bottlenecks might be starting to ease, she said, saying that in the medium-term, the ECB views the risks to the economic outlook as broadly balanced. However, in the near term, Lagarde continued, risks to the outlook for inflation are tilted to the upside, although while the near-term outlook is uncertain, inflation is expected to decline over the course of the year.
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