Free Trial

Lagarde: No "Magic Number" For Sufficiently Restrictive Rate

ECB
Q: Definition of "sufficiently restrictive". IMF noted 3.75% - would that be in the ballpark? At last meeting had discussion about scenario in which would need to reverse course, any progress on this?
  • A: Don't have a "magic number." Will know that that is when we get there. Are in the process of moving in that direction. What it means to have restrictive rates - look at bank lending survey it is obvious interest rates are having an impact.
  • Is it sufficient yet? We don't know. Not seeing transmission into real economy yet.
  • Seeing inflation coming down because headline is coming down as a result of energy prices, easing of bottlenecks. Not yet seeing complete impact desired to get to 2% interest rate target.
  • It is restrictive - no question about it - is it sufficiently restrictive? Not yet.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.