ECB's Lagarde expects interesting variations and changes at next ECB policy meeting
By Alexander Bueso
Date: Monday 12 Jul 2021
(Sharecast News) - The head of the European Central Bank put the world on notice to expect changes at the governing council's next policy meeting in 10 days' time.
In an interview with Bloomberg, Christine Lagarde reportedly said that meeting would include "some interesting variations and changes."
"It's going to be an important meeting," Lagarde had said the day before, in Venice, following a meeting of Group of 20 finance ministers and central bankers.
"Given the persistence that we need to demonstrate to deliver on our commitment, forward guidance will certainly be revisited."
Just the week before, the ECB had shifted its inflation target slightly higher despite having already consistently fallen short of the previous one for several years.
Now, the ECB was aiming for euro area consumer price inflation of 2.0% over the medium-term, instead of below but close to 2.0%.
Lagarde herself made the same point in Venice, saying: "Given the persistence that we need to demonstrate to deliver on our commitment, forward guidance will certainly be revisited."
She also said reportedly said that the current bond purchase programme might transition to a "new format" once it is wrapped up - but did not provide any further details.
However, she did say that the €1.85trn programme would run until "at least" March 2022.
The policymaker also pushed back on talk of exiting the ECB's current easy policies, explaining that she was "guardedly optimistic" about the economic recovery due to the appearance of the new Delta variant.
"We need to be very flexible and not start creating the anticipation that the exit is in the next few weeks, months."
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