MNI BRIEF: No Discussion Of Rate Cuts At Meeting-ECB's Lagarde

The ECB's Governing Council did not discuss interest rate cuts at its December policy meeting, President Christine Lagarde said on Thursday.

"We did not discuss rate cuts at all. There is a whole beach of room between no more hikes and cutting. There is a whole plateau of hold," Lagarde told reporters after the meeting. The ECB still has work to do to contain inflation, she said, but she did not directly address market pricing. (See MNI SOURCES: ECB Needs Sub-3% Core Inflation To Consider Cuts)

Lagarde added that the decision to taper and then end Pandemic Emergency Purchase Programme reinvestments from the middle of 2024 should not be seen as related to the timing of future policy decisions.

"Interest rates remain our primary tool and the unwind of PEPP is just a step to balance sheet normalisation. We want PEPP to operate on the backburner, she said.