HomeLive CommentsECB Lagarde: Effective communications to remain of paramount importance

ECB Lagarde: Effective communications to remain of paramount importance

In a speech today, ECB President Christine Lagarde emphasized two key reasons for the need of effective communications by central banks: “high inflation and high levels of attention on inflation.”

According to Lagarde, “While inflation is now falling, effective communication is likely to remain of paramount importance even after the current inflation spike is over,” she said.

Lagarde also highlighted the critical role that central banks play in anchoring inflation expectations. As various economic factors, such as relative price changes, come into play, it becomes even more important for central banks to maintain public confidence in their ability to ensure price stability.

The focus on inflation presents both an opportunity and a risk for central banks, Lagarde pointed out. On the one hand, the heightened public awareness around inflation could lead to unstable inflation expectations, posing a significant challenge for policy-makers. On the other hand, this increased attention gives central banks a valuable opportunity to communicate their commitment to price stability and to anchor public expectations.

Full speech of ECB Lagarde here.

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