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Lagarde: APP Runoff Impact Isn't Material

ECB
Q: Can the ECB hike if the Fed stops? And do you have any estimates on how much QT/TLTROs are adding to tightening - can you express that in bp of hikes?
  • A: ECB is independent. Looks from NZ to Fed and obvious US economy has spillover effects around the world given its size and depth of financial markets.
  • ECB has further ground to cover, irrespective of Fed. Will take into account currency impact etc.
  • Don't want to commit to number of APP runoff impact - it's not material.

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