Lagarde speech: Can’t say ECB rates have reached their peak

Christine Lagarde, President of the European Central Bank (ECB), is delivering her remarks on the policy outlook and responding to questions from the press following the Governing Council’s decision to hike key rates by 25 basis points in September.

Asked about how long the ECB will keep interest rates at these levels, Lagarde answered they did not discuss what “long enough” means. 

Key takeaways

“We did not discussed PEPP programme and reinvesmtnets”. 

“We did not discussed APP outright sales”. 

“We did not discuss how long we will leave rates at these levels”. 

“I’m not saying we are at peak rates”.

“Policy transmission to financing conditions is faster than in previous cycles.”

About ECB’s press conference

Following the ECB´s monetary policy decisions, the ECB President delivers a prepared statement and responds to questions from the press on the policy outlook. Her comments may influence the volatility of EUR and determine a short-term positive or negative trend. Her hawkish view is considered as positive, or bullish for the EUR, whereas her dovish view is considered as negative, or bearish.