ECB President nominee, IMF Managing Director Christine Lagarde, told European Parliament that “the challenges that warrant the ECB’s current policy stance have not disappeared.” And, “a highly accommodative policy is warranted for a prolonged period.” At the same time, she emphasized that “the ECB needs to listen and understand markets,” but “it need not be guided by markets.”
that monetary framework review is warranted given that it was a “long time ago” since last review in 2003. She said, “My strong belief is that the cost-benefit analysis and possibly a review of the monetary framework, that would have to be conducted, not just by the ECB, but also in coordination with other central bank institutions from around the world, is warranted, given the circumstances.”
