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Lagarde Reaffirms Data Dependence On "Some Time After"

ECB

Q: To what extent the plan to reduce dependence on Russian energy considered in the inflation forecasts? On the ‘short time after’ wording with respect to interest rates, does this suggest a longer wait for an increase in rates after asset purchases end?

  • A: We factored in a significant increase in energy prices, wherever that product comes from. We want to be data dependent. Whenever the data confirms that the medium-term inflation outlook is at target, then the decision should be made [with respect to policy rates].
  • The deliberate use of “some time after” wording provides a sufficient interval of time so that we can review the data and the robustness of the data so that we can make a decision.
This is followed by an inaudible question - and now the press conference is over.

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