ECB policy will evolve gradually, repeats Lagarde | Photo credits: Michael Probst/AP/Sipa
FRANKFURT, Feb 14 (Reuters) – Any changes to the European Central Bank’s (ECB) monetary policy will be gradual, its chairwoman Christine Lagarde said on Monday, as markets now expect two interest rate hikes this year in the euro zone, including a first in June, in the face of inflation.
Inflationary risks are on the upside but the ECB intends to be flexible and its decisions at its next monetary policy meeting in March will depend on future macroeconomic indicators, said Christine Lagarde, in almost the same terms as last week .
“Any adjustment to our policy will be gradual,” declared the President of the ECB before the European Parliament in Strasbourg. “We need more than ever to maintain flexibility and optionality in the conduct of our monetary policy.” (Report Balazs Koranyi, French version Bertrand Boucey, edited by Matthieu Protard)