Powell, Lagarde, Bailey and Ueda speak in Sintra

Monetary policy panel at ECB central banking forum in Sintra, Portugal began at 3:40 pm BST. Event was watched closely as it was attended by heads of European Central Bank, Bank of England, Federal Reserve and Bank of Japan. Key comments:

ECB President Lagarde

• We still have ground to cover

• If the baseline stands, we'll likely hike in July

• We will decide meeting by meeting

• We will have a lot more information in September

• I am not considering rate pause at the moment

• Manufacturing does not give a great hope for a strong recovery

• Transmission of policy likely to be less rapid than in the past due to fixed rate mortgages

• I may have underestimated the resilience of the economy

BoE Governor Bailey

• Economy turned out to be much more resilient

• Data showed clear signs of persistence of inflation

• We will do what's needed to meet the inflation target

• Headline inflation is to come down markedly in 2023

• Core inflation in the UK is much stickier

• I am interested that markets are expecting short-lived rates peak

• Balance sheet reduction has gone very smoothly so far

Fed Chair Powell

• Fed sees more tightening power coming through

• We believe there is more restriction coming, driven by labor market

• Strong majority is for two more rate hikes in the dot plot

• Policy may not be restrictive enough and may not be restrictive for long enough

• I wouldn't take moving at consecutive meetings off the table

• There is significant disinflation in the pipeline from rents but will take time

• I haven't seen progress in non-housing services inflation

• We need to see more softening in the labour market

• Softening is slower than expected

• There is a significant probability of a downturn but it is not the most likely case

• It is appropriate to slow pace of Fed's moves

• Response rates to data have dropped and are more volatile

• Commercial real estate is not one of reasons for June hold

• We are not nearly done at the moment

• It is going to take some time to get inflation to the goal

• I don't see anything that would make us want to adjust speed of balance sheet adjustment right now

• Underlying pace of QT is about $1 trillion per year

• I don't see us getting back to 2% this year or the next, I see us making progress

• I see us getting to 2% core inflation by 2025

BoJ Governor Ueda

• Underlying inflation is below target

• Wage inflation consistent with inflation target is well above 2%

• If we become reasonably sure about second part of inflation forecast that would be good reason for reconsidering policy change

• Economy is going to expand slightly above potential for some time

• We are seeing signs of inflation expectations rising but not fully in line with target

• China-US tensions may bring supply-chain inefficiencies