Comments by ECB president, Christine Lagarde
- Strategy review has yet to be concluded
- Too early to draw any firm conclusions on strategy review
- Policy must remain expansionary for as long as necessary to achieve ECB goals
- To underpin inflation expectations, need to ensure our aim is symmetric
- A persistent failure to meet inflation target can feed into inflation expectations
- We need to have a clear consensus - agreed by the governing council - on what tools are available when inflation is too low
- March measures will increase inflation by around 0.8% cumulatively between 2020 and 2022, GDP by 1.3% in that same period
I'm not quite sure what she is trying to get at here. Inflation pressures have significantly fallen in recent months and they are still trying to beat around the bush when it comes to jawboning the euro over the past month or so.
At this stage, should price pressures wane further, it is almost certain that they would have to resort to other measures to address that issue come what may.