Carsten Brzeski, fundamental economist at Ement, is quick to point out that in the course of her first visual appeal for the Eurozone Court as European central bank chief, Christine Lagarde eventually left no suspicions which the European central bank will state the beginning of the most important tech savvy take a look at considering that 2003.
“Reading between the lines and also taking into account Isabel Schnabel’s comments at her hearing at the European Parliament this week, it appears that the ECB will want to start this review as broadly as possible and without any limits. In our view, it is very likely that Lagarde will announce the start of this review at next week’s ECB meeting. This is the first ECB policy meeting since Lagarde came into office.”
“With the experience of 2003 in mind and current (and new) challenges for central banks in a low growth, low inflation and negative interest rate environment, we expect the ECB’s review to eventually focus on four main issues: the definition of price stability, how to interpret the mandate, and including climate change as well as communication.”
“All in all of, the European central bank is starting the beginning of a different assess its pecuniary guideline tactic.”
“Our current guess is that expectations should not be set too high. A change of the price stability definition to “around 2%”, received with some more attention to global warming plus much more communication channels clear deal resembles a a likely solution. However, before one of these meanings happen many diamonds need to be focused.”