European Central Bank President Christine Lagarde said the eurozone’s 3.8% inflation rate in September mainly reflected high energy costs, adding that the ECB expects that pressure to ease next year. Speaking on Saturday during the International Monetary Fund’s annual meeting, Lagarde said the energy shock is likely to keep eurozone inflation above the central bank’s target through the first half of 2027, while maintaining that the ECB’s current cautious policy response remains appropriate. She also said the ECB is designing a digital euro aimed at complementing cash in digital form for everyday retail payments. According to Lagarde, the digital euro is intended to spur innovation and competition in retail payments while allowing public and private solutions to coexist, supporting Europe’s strategic autonomy in payments. The remarks come after Cointelegraph reported on Sept. 21 that the ECB had launched the Pontes system, which allows financial institutions to settle wholesale tokenized asset transactions in central bank money as an alternative to private settlement assets such as stablecoins. The system initially offers a core set of services and is expected to be fully implemented by 2028.
European Central Bank President Christine Lagarde said the eurozone’s 3.8% inflation rate in September mainly reflected elevated energy costs, and the ECB expects the situation to ease next year.
She said the energy shock is expected to keep eurozone inflation above the central bank’s target through the first half of 2027, while adding that a cautious policy response remains appropriate. Lagarde made the remarks on Saturday during the International Monetary Fund’s annual meeting.
ECB continues work on the digital euro
Lagarde also said the ECB is designing a digital euro. In retail payments, the central bank is preparing to complement cash in digital form by introducing a digital euro for everyday payments.
She said the digital euro would stimulate innovation and competition in retail payments and help ensure the continued coexistence of public and private solutions, supporting Europe’s strategic autonomy in payments.
Pontes system was launched earlier
Cointelegraph reported on Sept. 21 that the ECB had launched the Pontes system, allowing financial institutions to settle wholesale tokenized asset transactions in central bank money as an alternative to private settlement assets such as stablecoins.
The system initially provides a core set of services and is expected to be fully rolled out by 2028.
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