The European Central Bank’s new economic bloc could be divided next week as policymakers meet to discuss changes to interest rates, President Christine Lagarde warned.
Investors in the bank are due to meet next Thursday to discuss for the first time since last week’s launch. They all agreed new way, which changes the way the bank developed its first fiscal policy since 2003.
Lagarde announced a memorandum of understanding, which included a 2% new interest rate and a temporary interim agreement.
But, speaking on Sunday, he told the Financial Times: “I’m not pretending that every six weeks [at monetary policy meetings] we will have one agreement and universal acceptance because there will be differences, some slightly different. And that’s fine. ”
The idea of starting a new ECB epidemic program will be a test of the need for a new banking system in the coming months. Many experts expect to announce it in early September.
Since the epidemic the ECB has set up an emergency procurement system and transferred billions of dollars to banks at exorbitant rates.
Some members of the previous governing council singing initially addressing this after inflation hit the new ECB target 2% earlier this year, although inflation has fallen slightly.
The ECB president has indicated he is looking forward to the upcoming war. “I have no hope or illusion that we will agree on all the decisions we make,” he said, adding that he hoped to “always strive” when the ECB met to establish a policy.
“What we need to do now is to re-evaluate our progress towards re-evaluating,” Lagarde said, emphasizing the need to incorporate a new requirement to make its principles “strong or resilient” as interest rates are nearing its end, as they are now.
But Lagarde pointed out that he should reject the initial stricter regulation of the current law, which economists see as the most influential in the history of the central bank. He said “strongly” and “persistent” were “search terms” that policymakers should not “ridicule or disparage”.
By failing to do so over the past 10 years, raising prices is reaching a target of “near, but low, 2%” of the ECB last week. on the contrary and what Lagarde described as a “simple, strong and integrated goal”. The central bank also said its new approach could mean “excess time when inflation is lower” before it happens.
“In the eyes of the critics [economic] fear, you have this very strongly [policy] to take action because you do not want to be caught, ”Lagarde said. He added that if interest rates were to come down “you have to stay away from the game, which is why you say ‘keep it up’.
The last time the ECB raised prices was in 2011, when the financial crisis in the euro erupted, which today seems to be a mistake. Most analysts do not expect it to raise its inflation rate from just below 0.5% by 2024 – one year later than the US Federal Reserve it is foretold to start raising its prices.
Describing the approach as a “starting document”, Lagarde said it would not make the ECB meaningless. Instead, he said, it gave developers more ideas to tolerate short-term inflation and under his control.
Lagarde said the review has analyzed new tools such as direct dissemination of “helicopter costs”For citizens I am expanding their purchases by pooling banks or banks, without considering how they can be used by the ECB.
“We looked at all sorts of things you can think of,” Lagarde said. “This was like part of an intellectual revolution looking at the whole range of possibilities. But it didn’t go beyond that.”
After several incidents of public outcry over his views, Lagarde said he had heard “loud and clear” that the two main concerns were climate change and house prices. The review said all of this.
The ECB is planning to reform its systems, banking, corporate procurement and operational policies in order to detect climate problems. Lagarde said this could address the economic crisis due to global warming and serve as “partners” to meet EU green targets.
It also highlights the integration of affordable and affordable housing with alternatives to inflation, and calls on EU statisticians to make similar changes to the list of mutual allies.
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