Lagarde says 2022 hike unlikely but will act on prices if needed

[BRUSSELS] European Central Bank President Christine Lagarde said an increase in interest rates is unlikely next year, but she won't hesitate to take action to combat elevated inflation as soon as it becomes necessary.

"When the conditions of our forward guidance are satisfied, we will not hesitate to act," Lagarde told Reuters in a webcast interview on Friday.

The ECB plans to decide on the future of its stimulus measures on Dec 16, when the central bank also presents new projections for economic growth and inflation. Its flagship US$2.1 trillion pandemic bond-buying programme is due to expire at the end of March. Lagarde said that under current conditions, net purchases under the programme are expected to end on time. Beyond that, she said that given the uncertainty the economy is facing, she'd prefer not to make long-term commitments.

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