Lagarde: ECB Expects Inflation to Rise, No Signs of Entrenchment Yet

Lagarde is holding two ideas together: an upward revision to medium-term inflation projections and an insistence that nothing yet looks entrenched. That distinction matters, because the first justifies caution on easing while the second argues against a sharper reaction. The signal is continuity — the "middle path" and a measured response — rather than a policy turn, so the substantive news sits in the revised projections more than in the framing. Whether those higher projections reflect persistent pressure or a one-off reset is the open question.