“Appointment“For the next meeting of the Board of Directors in September, where the issue of interest rates will be reviewed, ECB Chief Christine Lagarde gave shortly after today’s decision to keep the main interest rates of the central bank unchanged. He pointed out, however, that after the 2% inflation has been dumped, we are “in good position” to face risks arising from the new duty regime. “We can therefore wait for and evaluate the new September macro -lending to make the relevant decisions“He said.

On the course of the economy, the ECB president emphasized that “despite the uncertainties the European economy proved to be durable”, analyzing today’s unanimous decision. He added that there is no roadmap to reduce interest rates and any decisions will be made on the basis of new data.

As the ECB announced, the decision to maintain interest rates unchanged is linked to the achievement of the inflation at 2%. In general, the new data is aligned with the previous evaluation of the Board of Directors on the prospects of inflation. Domestic prices have continued to mitigate, with salaries increasing at a slower pace. In part, partially reflecting the previous interest rate cuts by the Board of Directors, the economy has so far been proven to be a difficult global environment. At the same time, the environment remains extremely uncertain, especially due to commercial differences.

Asked whether the euro’s appreciation against the dollar at a level of 1.2 creates a problem, the ECB chief said it is moving in the same context as Vice President of ECB D. Guintos, pointing out that “we do not target the exchange rate, but we are monitoring it as the exchange rate, Basic parameter in the determination of monetary policy. “

Regarding future risks, the ECB estimates that they remain downward. “Among the main risks is the further escalation of global commercial tensions and relative uncertainties, which could reduce exports and reduce investment and consumption. The deterioration of climate in financial markets could lead to stricter funding conditions and greater aversion to risk, and make businesses and households less willing to invest and consume. Geopolitical tensions, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, remain an important source of uncertainty. On the contrary, if commercial and geopolitical tensions are resolved quickly, this could enhance the climate and stimulate activity. The highest expenditure on defense and infrastructure, along with productivity reforms, would contribute to growth. Improving business confidence would also encourage private investment, ”said Kr. Lagarde.

The prospects for inflation, according to ECB estimates, are more uncertain than usual as a result of the unstable worldwide environment. A stronger euro could reduce inflation further than expected. In addition, inflation could prove to be lower if higher duties lead to lower demand for euro area exports and push countries with surplus capacity to redirect their exports to the euro area. Commercial tensions could lead to greater volatility and risk aversion to financial markets, which would affect domestic demand and, therefore, would reduce inflation.