ECB President Christine Lagarde told Bloomberg that there will at “some interesting variations and changes” in the upcoming July 22 meeting. “It’s going to be an important meeting,” she added. “Given the persistence that we need to demonstrate to deliver on our commitment, forward guidance will certainly be revisited.”
The immediate task for the Governing Council to align the statement and forward guidance with the result of the strategic review. “We’re going to look at the circumstances, we’re going to look at what forward guidance we need to revisit, we’re going to look at the calibration of all the tools we are using to make sure that it is aligned with our new strategy,” she said.
Regarding the PEPP program, she expected it to continue until “at least” March 2022, then followed by a “transition into a new format”, without elaboration. She emphasized, “we need to be very flexible and not start creating the anticipation that the exit is in the next few weeks, months.”
