“If we act now hastily, the recovery of our economies would be significantly worse and many jobs would be jeopardized,” warned European Central Bank chief Christine Lagarde, announcing a reduction in the overall volume of net bond markets.
He emphasized that the ECB’s duty was to maintain price stability, but “the question is when should we take action?”
“We have to keep in mind that the impact of every decision we make usually becomes apparent 9 to 18 months later,” Lagarde said in an interview with the RND Network. energy, which is mainly imported, which is why price management is largely outside the sphere of influence of European economies.
The second important factor, according to her, is the shortcomings in the supply chain. He even wonders what the ECB could do about it. On the other hand, raising interest rates, he explained, would not solve any of the current problems.
“On the contrary, if we act hastily now, it could have a clear negative impact on the recovery of our economies and put jobs at risk. “We would not help anyone,” he said, adding that the ECB had already begun taking action and that the emergency bond-buying program launched in the pandemic would end in March, a condition for raising interest rates at a later date. . The ECB will review in March, continued its head, the course of inflation, which may be higher than expected.
In terms of high energy pricesChristine Lagarde estimated that they will be maintained for some time, but noted that they are already so high that it is unlikely to continue to grow.
Inflation, therefore, predicted, will begin to de-escalate During the year, he clarified that the situation of the European economy is not comparable to that of the US economy – where a decision has been made to increase interest rates – due to the fact that the US economy has overheated, which does not apply to the eurozone.
In the same interview, Ms. Lagarde also referred to the thoughts on the introduction of a digital euro, which, however, if decided, will not mean, as she said, the abolition of coins and banknotes.
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