ECB mustn't tighten despite 'painful' inflation, Lagarde says

The European Central Bank shouldn’t tighten monetary policy too soon -- even in the face of “unwelcome and painful” inflation, according to President Christine Lagarde. 

The bank is taking concerns about rising prices “very seriously,” Lagarde told the Frankfurt European Banking Congress on Friday, reiterating that she doesn’t envisage an increase in interest rates next year.

“We recognize that higher inflation squeezes people’s real incomes, especially those at the bottom of the income distribution,” Lagarde said.

Euro-area prices are surging at the fastest pace since 2008. While inflation is forecast to ease in 2022, it’s likely to accelerate first on higher