ECB President Christine Lagarde said the ECB should be wary of withdrawing stimulus measures too quickly when inflation may only soar "temporarily".
"there is no sign that rising inflation is becoming widespread throughout the economy," Lagarde said in a speech at an important ECB meeting. "
"the key challenge is to ensure that we do not overreact to temporary supply shocks that have no impact in the medium term, and to nurture positive demand forces that could continue to push inflation towards the 2 per cent target," Lagarde said.