ECB President Christine Lagarde reiterated in a speech today that current interest rates are at the level to return inflation to target in a timely manner. She also laid out three criteria for future decisions.
“Based on our current assessment, we consider that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to our medium-term target”, Lagarde said.
Further shedding light on ECB’s decision-making framework, Lagarde stated that their “future decisions will continue to be based on these three criteria.” She detailed these criteria as: “the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.”
