03/11/2021 (Agence Europe) – “Despite the current inflation surge, the outlook for inflation over the medium term remains subdued, and thus these three conditions [for a rate hike] are very unlikely to be satisfied next year”, ECB President Christine Lagarde said on Wednesday 3 November in Lisbon at a conference of the Bank of Portugal. In July, the ECB identified three cumulative preconditions for a rise in the EU institution’s key interest rates: - inflation will have to reach 2% well before the end of its projection horizon (currently 2021-2022-2023); - this trend should be sustained over the rest of the projection horizon; - progress in core inflation (excluding energy and food prices) will have to be sufficient to be consistent with a stabilisation of inflation at 2% in the medium term (see EUROPE 12767/16). (MB)