ECB's Lagarde warns against hasty policy conclusions on inflation

The European Central Bank has time now to assess how inflation responds to rate hikes but should not rush to quick conclusions about where policy should be going, ECB President Christine Lagarde said on Tuesday.

"This is not the time to start declaring victory," Lagarde said in a speech in Berlin. "We need to remain focused on bringing inflation back to our target, and not rush to premature conclusions based on short-term developments."

Lagarde earlier said interest rates could steady for the "next couple of quarters" while French central bank Governor Francois Villeroy de Galhau said it could be a "few quarters."