The President of the European Central Bank (ECB), Christine Lagarde, assured that the organization is not following a specific trajectory and that it depends on data on the reduction of key rates after the first cut since 2016.
The European Central Bank (ECB) cut three key interest rates by 25 basis points this Thursday.
The fixed rate on the main refinancing operations decreased to 4.25%, the rate on the liquidity facility decreased to 4.5%, and the rate on the standing deposit agreement decreased to 3.75%.
At the press conference, Lagarde assured that the next decisions to determine changes in the indicative rates will be made meeting by meeting.
“We need to have enough data to conduct appropriate analysis,” he stressed, adding that decisions are made based on three criteria: the inflation outlook, underlying inflation dynamics and the strength of monetary policy transmission.
Lagarde believed that the forecasts of ECB technical specialists are informative, but they are not the only indicators for decision-making.
Thus, he noted that the Governing Council was not committed to a specific trajectory.
“In any case, we are ready to adjust all instruments within our mandate to ensure that inflation returns to our medium-term target and to maintain the smooth functioning of the monetary policy transmission,” defended the ECB president.
Regarding the cuts announced this Thursday, Lagarde noted that her confidence has increased in recent months.
When asked by reporters whether this decision was unanimous, the ECB president confirmed that there was a board member who did not support it.
Author: Lusa
Source: CM Jornal
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