Jacqui Douglas, chief European macro strategist at TD Securities, points out that the EU leaders have selected Christine Lagarde as the next ECB President, to replace Mario Draghi in November of this year.
Key Quotes
“Lagarde has not had a clear hawkish or dovish tilt per se, but under her leadership, the IMF was regularly advocating for a more dovish and activist ECB stance.”
“In the case of a steeper downturn in Europe, having Lagarde at the head of the ECB may be particularly important for her political connections at the highest level. We know that the ECB only really has limited monetary policy firepower remaining, and Ms Lagarde may be able to use her influence in order to push for further fiscal stimulus.”
“Lagarde’s transition from Draghi should be a smooth one, and we believe that she will continue to do “whatever it takes” to support the Eurozone.”
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