Lagarde said that they are at a turning point in monetary policy and that they do not see a recession for the Euro Zone at the moment..
European Central Bank President Christine Lagarde dismissed the view that the Eurozone is heading into a recession. Speaking at the World Economic Forum in Davos, Switzerland, Lagarde said: “We don’t see a recession in the Eurozone at the moment.”
Lagarde stated that they are at a turning point in monetary policy and will now switch from negative interest rates to positive in July. Lagarde said, “We have been living with negative interest rates for eight years. We will finish our net asset purchases in July, which will pave the way for interest rate hikes. We are in a very different situation than the USA. We did not lag behind developments. It is essential to be ready and predictable.”
Lagarde also evaluated inflation and stated that their main goal is to maintain price stability.
‘’Energy prices soared. This brings huge inflation. There are too many things that are pushing growth downwards. But on the other hand, unemployment is in a better place than it has been in the last 20 years.’’
