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Lagarde Reaffirms Data Dependency

ECB

In an event with the FT, Lagarde states that rates at current levels, if sustained long enough, will contribute to returning inflation to target.

  • Adds: This level of rates is the "baseline" in predictions, and is contingent on no further economic shocks which, if they take place, will cause the ECB to "revisit" the baseline.
  • Reaffirms data dependency in deciding how long is "long enough".
  • States: "long enough is long enough."

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