German bonds extended gains, with the two-year yield down 10 basis points to 3.03%.

ECB President Lagarde: Balance sheet reduction has not been discussed yet.

ECB President Christine Lagarde: The reduction in the minimum reserve requirement ratio has no effect on the policy stance.

European Central Bank President Lagarde: Resolutely curb inflation.

ECB President Lagarde: The ECB may adopt different policies at different meetings.

ECB President Lagarde: The decision made in September is not final.

[Analyst: The data will make the European Central Bank skip or hold stance in September] Lombard Odier chief economist SAMY CHAAR said: "I think interest rates have clearly peaked. I will come to the same conclusion as the Fed yesterday, they will Rely on the data. Our thinking is that the data will make them skip or hold in September." Lagarde had one thing to do in her press conference today and that was to avoid easing financial conditions. More dovish action must be accompanied by Stronger communication. Once rates peak, you will have to talk tough and we expect her to be very concerned about things like inflation, but on a macro basis we are very close to the peak.”

ECB President Christine Lagarde: In our risk assessment, the outlook for economic growth and inflation remains highly uncertain. Downside risks to growth include Russia-Ukraine conflict and rising geopolitical tensions more broadly, disrupting global trade and thus weighing on the euro zone economy.

ECB President Lagarde: Food and energy prices pose potential upside risks to inflation.

ECB President Lagarde: Unfavorable weather could make food prices rise more than expected.

Lagarde, President of the European Central Bank: Although most indicators of long-term inflation expectations are currently maintained at around 2%, some indicators are still at high levels and need to be watched closely.

Lagarde, President of the European Central Bank: Although some indicators are falling, underlying inflation remains high, all due to the continuing impact of rapidly rising energy prices on prices across the economy.

ECB President Christine Lagarde: Domestic price pressures are increasingly an important driver.

European Central Bank President Lagarde: The economy is expected to remain weak in the short term. Over time, falling inflation, rising incomes and improving supply conditions should support the economic recovery.

ECB President Lagarde: The drivers of inflation are changing.