MNI BRIEF: ECB Restrictive Shift "Evolutionary" - Lagarde
MNI (LONDON) - The European Central Bank’s change in its reference to “restrictive” in its statement is an “evolutionary” move, President Christine Lagarde said on Thursday, when asked about the significance of the change and whether it meant there was a chance of pausing the rate-cutting cycle in April.
The reference to monetary policy “becoming meaningfully less restrictive,” is not an "innocuous little change,” Lagarde said, after the ECB cut its benchmark deposit rate by 25 basis points to 2.50%
The ECB also needs to be attentive to the effect of growth and inflation of fiscal moves to boost defence spending, with the details of how and when spending is enacted being key, Lagarde said. (See MNI SOURCES: ECB To Revise 2025 Inflation Slightly Higher )