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- ECB's Lagarde: Interest rates not on a linear declining path, ECB could hold for longer
ECB's Lagarde: Interest rates not on a linear declining path, ECB could hold for longer
European Central Bank (ECB) President Christine Lagarde noted that interest rates aren't hard-locked to a steady path of declines, warning markets that expectations of time-dependent rate cuts isn't helpful to the ECB's goals.
Key highlights
Interest rates are not necessarily on a linear-declining path, there might be periods when we hold.
It is possible ECB will hold rates for longer than a single meeting.
Time-dependent guidance on rates not helpful.
I am keen to see the evolution of labour costs and corporate profits.
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