European Central Bank (ECB) president Christine Lagarde told investors to get ready for new guidance on measures in its monetary policy at next week’s session policy meeting.
In an interview with Bloomberg TV aired today, Lagarde told that the July session policy meeting will be an important meeting as it reminds of the persistence that needs to be shown to meet the ECB’s commitments.
Last week, the ECB announced a change in its inflation target to 2%, and allowed it to rise higher than the target.
This aims to reassure investors that policy will not be tightened ahead of time and increase their expectations for future inflationary growth, which has fallen below ECB targets for nearly a decade.
Current indicators The ECB says that it will buy bonds for as long as needed and keep interest rates at current levels until it sees a strong inflation outlook to achieve its goal.
Meanwhile, President Lagarde also said that the ECB's € 1.85 trillion Pandemic Purchase Program (PEPP) would move to a new format as soon as March 2022.
