The European Central Bank (ECB) will present a new outlook on its monetary policy at its policy meeting this month. Central Bank President Christine Lagarde called the policy meeting “an important one.”
The ECB has completed its strategic exploration and changed its inflation target from “close, but below 2 percent” to “2 percent”, which means new policies. Lagarde promises that the meeting, previously seen as unexciting, will produce “some interesting variations and changes”.
The forecasts for policy in the coming period will also be adjusted. First, according to Lagarde, the ECB must show that the bank will keep its promises. With which the ECB buys a total of 1,850 billion euros in bonds and government bonds, the current corona support package will certainly run until March, Lagarde expects. After that, the aid could “be reshaped”, the Frenchwoman said, without explaining.
Lagarde, therefore, does not want to speculate about when the corona support can end. However, she says she is only “cautiously optimistic” about the recovery of the eurozone economy due to the emergence of the Delta variant of the coronavirus. “We have to be very flexible and not create the expectation that we will stop supporting in the coming weeks or months.”