ECB's Lagarde: We should not overreact to supply shortages or rising energy prices

Christine Lagarde, President of the Europen Central Bank (ECB), said on Tuesday that they will pay close attention to wage developments and inflation expectations to ensure that inflation expectations are anchored at 2%, per Reuters.

"We should not overreact to supply shortages or rising energy prices as our monetary policy cannot directly affect those phenomena," Lagarde added.

Market reaction

These comments don't seem to be having a noticeable impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was down 0.12% on a daily basis at 1.1607.