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Lagarde: Data Dependence Applies To Both Restrictiveness Level And Time

ECB

Q: What do you say to people who might accuse you of making a likely recession worse? Is the expectation that NCBs and the ECB are likely to make sizeable losses in the coming years having any impact on your discussions and decisions?

  • A: The answer to the second question is ‘no’.
  • A: The objective we have is price stability, it is not to make profit. The fight that we are leading against inflation is making progress. Is it satisfactory? No. Inflation is still projected to remain too high and for too long.

Q (From MNI's Santi Pinol): Is there any contradiction in data dependency and higher-for-longer? Are you prepared to cut rates if growth slows further?

  • A: The data dependency applies to both the sufficiently restrictive level, as well as the length of time that it has to stay at the level.

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