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Lagarde: New forecasts will be "very informative" to the GC in September

ECB
  • Q: How much do you think tighter monetary policy is contributing to the weakness in the eurozone economy?
  • A: We focus on the impact of monetary policy tightening on inflation. The exercise of updating the inflation outlook will be very informative for the Governing Council to determine how much has been transmitted and what is expected to continue to be transmitted. On the financing leg, a lot has been transmitted. For the economy at large, not as much yet.
  • What would it take in terms of reduction in your growth forecasts and inflation forecasts in September, for you to pause interest rate rises?
  • A: We will have to see.

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