Lagarde brainwashed by BlackRock while year after year after year European workers and savers lose purchasing power?
The European Central Bank has “every reason” not to respond as forcefully as the Federal Reserve to soaring consumer prices, according to President Christine Lagarde.
“We’re all in very different situations,” Lagarde told the France Inter radio station Thursday in an interview. Inflation is “clearly weaker” in the euro area, while the region’s economic recovery is also not as advanced as in the U.S., she said.
“We have every reason to not react as quickly and as abruptly as we could imagine the Fed might,” Lagarde said. “But we have started to respond and we, of course, stand ready to respond with monetary policy if figures, data, facts, require it.”
The ECB has come under pressure to act after inflation in the currency bloc hit a record 5% last month. But while officials have agreed to wind down pandemic stimulus, they say an interest-rate increase is highly unlikely this year since the current bout of inflation is driven by supply shocks and a spike in energy costs, and should gradually ease.
Under current conditions and inflation forecasts, “an increase in interest rates is not expected in 2022,” ECB Governing Council member Pablo Hernandez de Cos told Spanish television broadcaster TVE in a separate interview on Thursday.
PAR12:52:51 GMT - 01/20/2022
Could Lagarde's opinion become a minority opinion in the ECB if one takes into account the population and the GDP represented by the opposing members.
If the president of the ECB loses the support of its biggest shareholder there is a huge problem.
PAR15:19:41 GMT - 01/20/2022
ECB members cautioned that inflation staying higher for longer can’t be ruled out and that it can easily stay above 2% in 2023/24.
Some members didn’t agree with the policy proposal as they made reservations on the recalibration of APP bond buying, the extension of reinvestments under a pandemic emergency scheme and the increased flexibility of bond buys beyond the pandemic. Even so, this wasn’t the trigger for a further rise in European yields.
Earlier today ECB’s Lagarde in an interview already indicated that the ECB is in a different position compared to the Fed. The German yield curve bull flattens with yields declining between 1.2 bps (2-y) and 2.8 bps (30-y) (rise in 5-yield was benchmark change). The 10-y yield (-0.035%) again trades well in negative territory).
Israel MacroMicro 17:43:22 GMT - 01/20/2022
you will get 19.50 VIX during next week
have a great weekend
PAR 19:12:17 GMT - 01/20/2022
By always talking down the Euro Lagarde only increases
Europe's inflationary problems.
In reality the inflation in Europe is worse than in the USA.
Lagarde just can't admit that she has been completely out of touch with the economic reality and she just refuses to change her mind and do her job.
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Mon 27 May 2019 AAGB/US- Holiday Tue 28 May 2019 A 14:00 US- Consumer Confidence C 13:00 US- Case-Shiller Wed 29 May 2019 A 08:55 DE- Employment AA 18:00 US- BOC Decision A 18:30 US- EIA Crude Thu 30 Mar 2019 AAEZ/CH- Holiday A 12:30 US- Weekly Jobless Fri 31 Mar 2019 AA 10:00 EZ- Flash HICP A 12:30 US- Personal Income, Spending, Deflator AA 14:00 US- Final Univ of Michigan
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