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Lagarde: We Use Various Components To Assess Financial Conditions

ECB
Q: Could you detail what financial data you are monitoring? Is there a new emphasis on this data or has it always been there? How have the developments in the banking sector impacted the decision?
  • A: We work on the basis of data, observations and facts. There is currently a degree of uncertainty that has been amplified by the recent financial tensions. We are particularly concerned about our monetary policy transmission.
  • We use various analytical tools to look at credit to corporates and households, terms and conditions, restrictions etc to assess whether financial conditions are tightening and what impact this will have on the economy. Those are the key components that we assess.

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