President Christine Lagarde and the Governing Council remain true to themselves. Despite an inflation rate of 7.5 percent in the euro zone, the monetary authority does not want to make any significant changes in monetary policy. Lagarde explained the details in the early afternoon.
ECB President Christine Lagarde faces a sharp increase in inflation.
The European Central Bank (ECB) is leaving its key interest rates unchanged, including the deposit rate at -0.5 percent and the actual policy rate at zero percent. The monetary authority also does not appear to be changing the monetary policy outlook, despite the highest inflation rates in the euro area for around 40 years, as the media release published at 1.45 p.m.
At the last ECB Council meeting in early March, the central bank announced a gradual reduction in securities purchases. In the third quarter, it wanted to stop buying mostly government bonds for good if there were no negative economic surprises by then. The ECB is sticking to this outlook.
In March, she had also changed the wording for a possible rate hike. This should no longer take place “shortly after” the end of the securities purchases, but “some time later”. In the press conference, ECB President Christine Lagarde then defined this period in more detail and spoke of one week to months.
Lagarde will explain today’s decision by the Governing Council at a media conference at 2:30 p.m.
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