Following the European Central Bank’s (ECB) decision to leave its interest rates unchanged, Christine Lagarde, President of the ECB, is responding to questions from the press.
Key takeaways
“Q2 forecasts in negative scenario point to minus 15% quarter on quarter.”
“Will make full use of flexibility embedded in PEPP and other policy tools.”
“Didn’t discuss including junk-rated bonds in APP.”
“OMT intended for particular countries, circumstances.”
“No longer facing situation when OMT was created. Best tool we have is the Pandemic Emergency Purchase Program (PEPP).”
About ECB President Lagarde
The European Central Bank’s President Christine Lagarde, born in 1956 in France, has formerly served as Managing Director of the International Monetary Fund, and minister of finance in France. She began her eight-year term at the helm of the ECB in November 2019. As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the euro’s trend in the short-term. Usually, a hawkish outlook boosts the euro (bullish), while a dovish one weighs on the common currency (bearish).
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