Christine Lagarde makes it exciting. “It will be an important meeting,” said the ECB President with a view to next week.
The President of the European Central Bank (ECB), Christine Lagarde, has indicated some changes for the next interest rate meeting in about a week and a half.
Interesting modifications and changes can be expected for the July 22 meeting, she told Bloomberg TV on the sidelines of the G20 summit on Sunday. “It will be an important meeting.”
In the past week, the central bank adjusted its monetary policy strategy. In addition to a new inflation target, it was decided to take climate aspects into greater account in monetary policy and to incorporate the costs of owner-occupied residential property into the inflation rate. In addition, the ECB wants to simplify its communication. The latter could be reflected in the declaration on the interest rate decision.
According to Lagarde, the Pepp corona crisis program, with which the ECB primarily purchases government bonds from the euro countries, is to be continued as planned until “at least” March 2022. Then it could be converted into a new format, said the Frenchwoman, without explaining this in more detail. Some central bankers have already proposed that parts or aspects of the 1.85 trillion euro program be transferred to the central bank’s general securities purchases (APP) once it expires.
Lagarde was moderately optimistic about the economic situation. The rapid spread of the delta variant of the corona virus triggered her concerns. “We have to be very flexible and not arouse the expectation that the exit will take place in the next few weeks or months,” she said, referring to the ECB’s monetary policy, which has not only been extremely loose since the pandemic.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
