Lagarde speech: Premature to talk about rate cuts

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Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave the key interest rates unchanged in January and responds to questions from the press.

Key quotes

“Geopolitical tensions in Middle East are an upside risk to inflation.”

“Inflation could fall more quickly if energy prices evolve in line with recent downward shift.”

“Consensus at table was that it was premature to talk about rate cuts”.

About ECB’s press conference

Following the ECB´s monetary policy decisions, the ECB President delivers a prepared statement and responds to questions from the press on the policy outlook. Her comments may influence the volatility of EUR and determine a short-term positive or negative trend. Her hawkish view is considered as positive, or bullish for the EUR, whereas her dovish view is considered as negative, or bearish.

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