Lagarde, very unlikely interest rate hike in 2022

BRUSSELS, NOV 15 – “Regarding official interest rates, in our prospective guide we have clearly explained the three conditions that must be met before rates start to rise. Despite the current jump in inflation, the medium-term prospects remain contained and therefore it is very unlikely that these three conditions will be met next year ”. This was stated by the president of the ECB, Christine Lagarde, in a hearing in the European Parliament. “We still see inflation moderating next year, he said again, but it will take longer than initially anticipated” and “we continue to expect it to stay below our new symmetrical 2% target in the medium term.” Even after the end of the pandemic emergency, he explained, it will still be important that monetary policy, including the appropriate calibration of bond purchases, supports the recovery across the euro area and a sustainable return of inflation to our target of the 2%”. . “The challenge is not over yet, the decisions that are made by policy makers will continue to determine the strength of the recovery,” he added. (HANDLE).

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