ECB's Lagarde repeats pledge for gradual policy shift

FRANKFURT - Any change in European Central Bank (ECB) policy will be gradual, ECB President Christine Lagarde said on Monday, with markets expecting to increases to interest rates this year.

In remarks nearly identical to her comments a week ago, Lagarde said that inflation risks are skewed to the upside but the ECB aims to maintain flexibility and policy decisions in March will depend on incoming data.

"Any adjustment to our policy will be gradual," Lagarde told the European Parliament's plenary session in Strasbourg. "We need more than ever to maintain flexibility and optionality in the conduct of monetary policy".