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.
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.”
Against the British pound, the euro fell to its lowest level in a month and lost 0.3% to 82.74 pence.
By late afternoon, the dollar index, which measures the greenback against six currencies, was up 0.5% at 100.32, having previously touched 100.76, the highest level since April 2020. .
The dollar extended gains after data showed US retail sales increased in March, mainly driven by higher gasoline and food prices.
Source: Ambito
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