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Lagarde: We Have To Be Patient And Persistent At The Lower Bound

ECB

Q: Can you explain in what ways the underlying inflation dynamics are different to other advanced economies, or do you thinking over central banks are overreacting? We have not yet seen the slowdown in PEPP purchases – how should we read this data?

  • A: Comparisons are odious. We are not talking about the same economies. We are fully committed to our 2% inflation target over the medium term. We have to do that on the basis of inflation. We have to be patient and persistent, particularly at the lower bound which is where we are.

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