European Central Bank (ECB) President Christine Lagarde noted during Monday's US market session that risks to inflation exist on both sides of the line, and reminded markets that European inflation metrics should return to the ECB's target range sometime this year.

Key highlights

The conditions for a recovery remain in place.

Inflation is set to return to our 2% medium-term target in the course of this year.

Risks on both the upside and the downside.

The inflation outlook is more uncertain due to trade friction.

Wage growth is moderating as expected.

The frequency of shocks is likely to remain high in the future.