ECB President Christine Lagarde attributed September's 3.8% euro area inflation largely to high energy costs. She said a measured policy response remains appropriate while the bank prepares a digital euro for retail payments.
European Central Bank President Christine Lagarde said September's 3.8% euro area inflation rate largely reflected high energy costs, which the ECB expects to ease next year.
However, an energy shock is expected to keep euro-area inflation above the bank's target through the first half of 2027. Lagarde said a measured policy response remains appropriate, according to a statement she delivered at the IMF Annual Meetings on Saturday.
Meanwhile, Lagarde said the ECB is devising a digital euro to complement cash for day-to-day payments in the retail space. According to Lagarde's statement: "The digital euro will further stimulate innovation and competition in retail payments".
She added that the project would ensure the continued co-existence of public and private solutions, which she said underpins Europe's strategic autonomy in payments.
Separately, Cointelegraph reported on Sept. 21 that the ECB had launched Pontes, a system that lets financial institutions settle wholesale tokenized asset transactions in central bank money. The system initially offers a core set of services, with full implementation expected by 2028.
Sources: ECB, Cointelegraph
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