Lagarde: Either Our Fwd Guidance Is Unclear Or Infl Outlook Is Not Believed

Q (from MNI's Luke Heighton): Are you trying to signal the ECB's actions to the wider economy rather than the financial markets? If that is not the case, why does the ECB spend so much time signalling its policy to financial institutions that are not listening?

• A: Repetition will eventually come through. Either our forward guidance is not clear or the inflation outlook is not believed. We spend a lot of time dissecting our inflation analysis. We are convinced that our assessment is correct.

Q: With respect to TLTROs, will there be a cliff edge or a transition towards new TLTROs?

• A: On TLTRO, we should do everything possible to avoid cliff edge effects.{EU}