Christine Lagarde: “ECB is ready to maintain financial stability in the euro area”

“The eurozone banking sector is resilient, with strong capital and liquidity positions”, European Central Bank chief Christine Lagarde said, but the European Central Bank is “fully prepared to provide liquidity to the eurozone financial system if needed and to maintain the smooth transmission of monetary policy”, this Monday after the rescue of Credit Suisse bank day was repeated. At the time of his monthly appearance economic affairs commission Appreciating the “quick action” of the Swiss authorities and the “decisive” decisions taken by the European Parliament, Lagarde also emphasized that the organization he chairs closely follows the development of the market and is willing to respond “when necessary”. Maintaining price stability and financial stability in the euro area.

“We are ready to provide support and liquidity to the euro area banking system. I know that if the tools at our disposal are not sufficient, our staff are capable of anticipating any readjustment or recalibration that will be necessary to face any issue. risk of liquidity shortage will emerge in the future”, he insisted during discussion with lawmakers

Regarding the macroeconomic scenario of the eurozone and the future of the economy, Lagarde explained that indicators have improved in recent months, coinciding with abating concerns about energy shortages and rising prices. “Besides these factors the support that fiscal policy continues to provide and continued resilience of the labor market supports the recovery in the coming quarters.”

additional uncertainty

While the ECB forecasts 1.6% for 2024 and 2025, it has recently revised growth upwards to 1% for 2023, but these estimates correspond to before the emergence of tensions in the financial markets, according to the French. “Additional uncertainty” In terms of inflation and growth. Although inflation has receded from its October record thanks to falling energy prices, suppressed price pressures continue to fluctuate in the economy with a lag. As a result, inflation excluding energy and food continued to rise, reaching 5.6% in February.

“As inflation is expected to stay too high for too long, the Governing Council decided last week to raise the ECB’s three core interest rates by 50 basis points, in line with our determination to ensure that inflation returns on time. Inflation is the medium-term target of 2%,” said the ECB chairman. high level of uncertaintypolicy rate decisions will be determined by our assessments of the inflation outlook in light of future economic and financial data, core inflation dynamics and the strength of the monetary policy transmission.

Source: Informacion

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