ECB Observers Waiting For Lagarde’s Speech On Monetary Policy
European Central Bank observers monitoring signals of further interest rates are eagerly awaiting clues from the new president, Christine Lagarde, at her first official speech this week, Bloomberg reports.
Lagarde took office three weeks ago, but has not yet spoken about monetary policy. This caused a wave of concern about the impact of negative interest rates and quantitative easing.
Traders in the Eurozone financial markets have lowered expectations for further stimulus, and with the advent of Lagarde, the likelihood of another decline of 10 basis points fell from 60% to 40%. Investors now want to know how the ECB will respond to the weakening economic outlook.
In her first address as president, Cristine Lagarde told the audience that those who were waiting for comments on monetary policy could leave the room.
Lagarde is likely to lift the veil of secrecy on Friday at a banking conference in Frankfurt. Otherwise, the next time this may happen on December 12 at a press conference after the first meeting of the Governing Council, where she will present new economic forecasts, including for 2022.
Lagarde has a good reason for careful action. Recent economic reports have shown that the Eurozone seems to be gradually recovering, and Germany has managed to avoid a recession.