ECB's President Lagarde: ECB ready to adjust all instruments as appropriate
23.01.2020, 14:07

ECB's President Lagarde: ECB ready to adjust all instruments as appropriate

  • Says incoming data are in-line with baseline scenario
  • Manufacturing remains a drag
  • Employment growth continues to support economy
  • There are some signs of an increase in inflation that's in line with expectations
  • In light of continued subdued inflation outlook, monetary policy has to remain stimulative for a prolonged period of time
  • We will closely monitor inflation developments
  • ECB committed to symmetry on inflation
  • Eurozone inflation increase 0.3% q/q in Q3 vs +0.2% in Q2
  • Weak growth reflects weakness in global trade
  • Surveys and data points show some stabilization
  • Near-term growth expected to similar to rates observed in previous quarters
  • Risks tilted to the downside but less pronounced
  • Weaker growth momentum is delaying the passthrough of inflation
  • Crosscheck confirms ample degree of monetary accommodation still needed
  • ECB view on risk balance was unanimous
  • ECB discussed whether risks were closer to balanced
  • ECB hopes to decide on strategy review in November/December
  • ECB policy decisions will be independent from review
  • Tiering is operating extremely well
  • There is no discussion at this time to change tiering multiple
  • Tiering has proven to be effective, no question about it

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