Lagarde: “Pretty confident” that by end-2023 inflation numbers will look different

• Disinflation has to be ‘timely’ and ‘sustainable’
• German growth not broken and demonstrating resilience
• Proximity to war in Ukraine part of the reason for differing economic paths for US and Europe
• Changing inflation target would be ‘deceptive’ and counter to anchoring expectations

That’s a dovish headline from Lagarde, though hardly a signal about a Sept pause.