Lagarde Says ECB to Be 'Resolute' on Hitting Inflation Mandate (Bloomberg)
Last Modified: 09:53 AM, Mon Dec 02, 2019

Christine Lagarde said today the ECB will be "resolute" in restoring euro-zone price stability under her presidency, while stressing that an upcoming strategy review will be open-minded. "It is premature to venture here into debates about the precise scope, direction and timeline of our review, as the matter has not yet been discussed thoroughly by the Governing Council," she said. "What I can confirm, however, is that the strategy review will be guided by two principles: thorough analysis and an open mind." "New challenges have emerged such as demographics, disruptive technology and climate change," she added. "Conventional wisdom has been challenged and monetary policy globally has explored unchartered territories."

2019-12-02 

By Piotr Skolimowski

(Bloomberg) -- Christine Lagarde said the European Central
Bank will be "resolute" in restoringeuro-zone price stability
under her presidency, while stressing that an upcoming strategy
review will be open-minded.

"The ECB's accommodative policy stance has been a key
driver of domestic demand during the recovery, and that stance
remains in place," she said in the text of opening remarks at
the European Parliament for her first testimony in the role.

"It is premature to venture here into debates about the
precise scope, direction and timeline of our review, as the
matter has not yet been discussed thoroughly by the Governing
Council," she said. "What I can confirm, however, is that the
strategy review will be guided by two principles: thorough
analysis and an open mind."

Lagarde acknowledged the side effects of the ECB's ultra-
loose policy -- negative interest rates, quantitative easing and
long-term bank loans -- and said the review will try to gain a
better understanding of how longer-term trends affect what the
central bank can control.

Inflation has yet to return to the goal of just under 2%
despite years of pumping liquidity into the financial system,
and the ECB itself has become increasingly concerned that its
policies might threaten financial stability.

The new ECB head made only a passing mention of climate
change in her opening remarks. The central bank has come under
increasing pressure to play a bigger role in that area, though
policy makers including Bundesbank President Jens Weidmann have
warned against heavy-handed steps such as barring the bonds of
polluters from QE, an idea proposed recently by a group of
activists and academics in an open letter to Lagarde.

"New challenges have emerged such as demographics,
disruptive technology and climate change," she said.
"Conventional wisdom has been challenged and monetary policy
globally has explored unchartered territories."
Lagarde: Eurozone Growth Is Weak, Stimulus Working
2019-12-02 

Frankfurt, Germany (AP) -- New European Central Bank
President Christine Lagarde says that growth "remains weak" in
the 19 countries that use the euro but gave no indication that
she was contemplating more stimulus, saying the measures enacted
under her predecessor were supporting the economy.

Lagarde said in her first regular appearance before the
European Parliament on Monday that manufacturing companies were
hardest hit by a "sluggish and uncertain" global economy that
lowers demand for goods from eurozone companies - but that
services companies were helping support growth and employment.

She took over from Mario Draghi on Nov. 1, after the bank
decided on a rate cut and bond purchases in September. The
eurozone grew only 0.2% in the third quarter.


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