A Wary ECB Doubles Down Even As Inflation Recedes

Policymaker rhetoric damped enthusiasm around a sharp drop in European inflation on Thursday. "There is no clear evidence that underlying inflation has peaked," Christine Lagarde said, speaking in Hanover. "We need to continue our hiking cycle until we are sufficiently confident that inflation is on track to return to our target in a timely manner." Just prior to Lagarde's remarks, preliminary data for May showed headline inflation receded to 6.1%, the slowest YoY pace since Russia invaded Ukr