European Central Bank (ECB) President Christine Lagarde says they should not follow the steps of the US Federal Reserve (Fed) in setting its monetary policy.
Lagarde once again offers a dovish mixed statement by saying there are some indications that supply chain disruptions are diminishing and are likely to contribute to price stabilization.
Following that, inflation is expected to decline gradually in 2022 and continue to fall in 2023 and 2024, Lagarde added.
He also said that the cycle of economic recovery in the United States is ahead of Europe. Therefore, the ECB has reason not to act as quickly as the US central bank.
Meanwhile, Lagarde also commented on the latest trend in Germany's 10 -year bond yield of more than 0% for the first time since 2019. If the yield rises again, this means that the economic fundamentals improve, Lagarde said.
Lagarde’s statement proves that the ECB is likely to continue to maintain their current monetary policy while most other major central banks have acted to tighten policy.
