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Lagarde: Not Saying Rates Have Peaked

ECB

Lagarde notes that the Governing Council is "not saying" that rates have peaked:

Q: Did you discuss what ‘sufficiently long’ means in practice in terms of restrictive rates? What made you decide that now is the time to allude to peak interest rates?

  • A: No, we did not discuss what was ‘sufficiently long enough’ as we continue to be data dependent. We will test our assessment against future projections.
  • A: I am not changing anything from Sintra. We are not saying that we are now at peak.

Q: How do you rate the ECB's current credibility? Do you think the banking system in Europe is safe from a Lehman-style crisis?

  • A: The ECB is on a positive path directionally. My definition of credibility is that we deliver on our inflation mandate. We do everything we have to do deliver on that.

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