European Central Bank President Christine Lagarde spoke in an interview with Greek newspaper Kathimerini. The ECB posted the interview on its site, here: Speaking to the Greek newspaper, President Christine Lagarde reflects on the Greek economy’s strong recovery in recent years, and reiterates the ECB’s determination to return euro area inflation to 2% Highlights: “We
We are watching the developments very closely They are bound to have economic implications for us to some extent Don’t want to jump to conclusions on extent of impact on economies, monetary policy He’s not wrong but at the same time, the ECB is merely just trying to buy itself as much time as possible
If inflation meets forecast, then no more rate hikes are needed Backs reopening discussion on PEPP timetable We have to live with current uncertainty Oil prices are an upside risk to inflation This just conforms to market expectations that they are already done with rate hikes. As for the PEPP topic, it’s not quite unanimous
Interest rates are on a good level Events in Israel add to economic incertitude Wary about oil price developments over Israel situation He adds that there is no reason presently to tweak inflation prospects and they still see it converging to the 2% mark by 2025. This article was written by Justin Low at www.forexlive.com.
