Lagarde said there was no clear timetable for when rates would start to rise, adding that it could be weeks or even months after the end of the stimulus. “We’ll deal with interest rates when the time is right,” he insisted.
The ECB concluded its latest monetary policy meeting with cautious steps to withdraw monetary support and avoided giving a definite timetable. He confirmed plans to scale back bond purchases, commonly known as quantitative easing, this quarter and then end them sometime in the third quarter.
Against the British pound, the euro hit its lowest level in a month, before trading down 0.4% at 82.85 pence.
Lagarde’s comments were “similar language to the March meeting, except this time there was no hard-line surprise in the form of monetary policy tightening,” said Ima Sammani, currency markets analyst at Monex Europe. .
“Frankly, considering how uncertain conditions are right now, Lagarde’s caution may be warranted, but it’s fair to say that markets were expecting something else after the bumpy March meeting.”
In mid-session trading, The dollar index, which measures the greenback’s performance against six currency pairs, rose 0.8% to 100.57, after hitting 100.76, its highest since April 2020.
The dollar extended gains after data showed that US retail sales increased in March, mainly driven by higher gasoline and food prices.
The yen took a breather, recovering slightly from 20-year lows against the greenback and trading stable at 125.80 per dollar.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
