Lagarde, energy prices are risk for purchasing power

ROME, OCTOBER 28 – The bottlenecks in global trade “are clouding the prospects” for economic activity in the coming quarters, and the rise in energy prices “could reduce purchasing power in the months to come”. This was stated by ECB President Christine Lagarde in the press conference at the end of the Governing Council in which it was decided to leave the rates unchanged (the main rate at zero, the deposit rate at -0.50% and the marginal loan rate at 0.25%) and to continue purchasing the pandemic program until March. Lagarde also dismissed the hypothesis of a monetary tightening in the “near future”, explaining that “the conditions for a rate hike are unlikely to occur in the timing expected by the markets”, ie in 2022. Also because inflation, expected in further rise in the coming months, “in the ECB’s expectations it will decrease in the course of 2022”. (HANDLE).

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