Lagarde: "Some Time After" Could Be A Week To Several Months

The question and answer period with Pres Lagarde begins. The first question is: Did anyone asking for a definite end date for APP. What was the argument for keeping the current formulation? Are you comfortable with market expectations of policy rates? Is it consistent with your definition of ‘gradual’?

• A: There is a much stronger affirmation of our assessment of the data since 5 weeks ago. This meeting was not a projection exercise, it was an interim Governing Council meeting.
• We affirmed the net asset purchases very likely concluding in Q3 without being more specific, but being open minded as to when in the quarter that is. That could be early, or late.
• The determination around the GC was to take stock of the projection exercise at the next GC meeting to determine the timing of the conclusion of net asset purchases.
• We are sticking to our sequence. “Some time after” allows for gradualism, flexibility and optimists. This could be anything from a week to several months. We will deal with interest rates when we get there.