Daily Management Review

ECB to take pause to assess impact of rate hike


According to ECB head Christine Lagarde, the bank has now reached a position where it can pause and evaluate the results of the monetary policy tightening it has already implemented.

Emma Haruka Iwao
Emma Haruka Iwao
She stated, "We have already done a lot," while speaking in Frankfurt at a Bundesbank event. "With all the tools at our disposal, we are able to closely monitor a number of factors, such as corporate profits, wages, the state of the economy, geopolitics, and, of course, how the tools being used are impacting the economy, in order to make decisions about what to do next."

The ECB left steady main interest rates by last month, stating that if they were maintained long enough, the level would aid in bringing euro zone inflation down to its 2% target.

Inflation in the area is predicted to decline once more in November, having reached a two-year low of 2.9% in October. Its economy shrank by 0.1% in the third quarter compared to the first three months, but the ECB is optimistic that the rebound in consumer spending will prevent a recession.

source: ecb.europa.eu