ECB mission on inflation not yet accomplished, insists Lagarde
Christine Lagarde, President of the European Central Bank (ECB), has emphasized that the bank’s mission to achieve its inflation target has not been fully accomplished. Despite recent positive developments in the Eurozone economy, Lagarde stressed that the ECB will continue to pursue its goal of price stability.
In her speech at the ECB’s annual symposium in Sintra, Portugal, Lagarde acknowledged the improvements in the Eurozone, including a rebound in economic activity and declining unemployment rates. However, she highlighted the persistent low inflation rates, which have fallen short of the ECB’s target of close to 2%.
Lagarde emphasized that the ECB remains committed to its mandate of achieving price stability, as outlined in the European Union’s Treaty. She stated that the ECB’s primary objective is to ensure that inflation remains on a sustainable path towards its target, and that the bank has the necessary tools to achieve this goal.
The ECB has implemented various measures to stimulate the Eurozone economy and boost inflation. These include cutting interest rates to record lows, implementing a quantitative easing program, and providing long-term loans to banks. Lagarde noted that these measures have been effective in supporting economic growth and job creation, but have not yet led to the desired level of inflation.
Lagarde also addressed concerns about the potential side effects of the ECB’s policies, such as the impact on financial stability and the growing inequality gap. She acknowledged the need for a comprehensive assessment of the ECB’s toolkit and its potential implications. Lagarde emphasized the importance of ensuring that the benefits of the ECB’s policies are distributed fairly across society.
Looking ahead, Lagarde highlighted the need for a holistic approach to address the challenges facing the Eurozone. She emphasized the importance of structural reforms, fiscal policies, and a supportive monetary policy to ensure sustainable economic growth and price stability. Lagarde called for a coordinated effort among Eurozone countries to implement these measures and strengthen the resilience of the Eurozone economy.
In conclusion, Lagarde reiterated the ECB’s commitment to its inflation target and its determination to take necessary actions to achieve it. She acknowledged the progress made in the Eurozone economy but stressed the need for continued efforts to address the persistent low inflation rates. Lagarde called for a comprehensive approach to tackle the challenges facing the Eurozone and ensure a sustainable and inclusive recovery.
Overall, Lagarde’s speech emphasized the ECB’s ongoing mission to achieve its inflation target and its commitment to supporting the Eurozone economy. Despite the progress made, Lagarde highlighted the need for further action to address the persistent low inflation rates and promote sustainable economic growth. The ECB’s policies will continue to evolve to ensure price stability and support the recovery of the Eurozone.