Lagarde: 2% inflation however “exceptional uncertainty” | EUROtoday

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“With the inflation started to stabilize in a lasting way around our 2%goal, at the beginning of this month the Board of Directors decided to reduce the main interest rates of 25 basis points again. At the current levels of rates, we believe we find ourselves in a good position to cope with a context of uncertainty ». This was said by the president of the ECB Christine Lagarde in his intervention in front of the Commission for Economic and Monetary Affairs to the European Parliament.

Exceptional uncertainty

“Especially within the present context of remarkable uncertainty – stated Lagarde – we’ll undertake an information primarily based on knowledge and we’ll consider now and again, assembly by assembly, probably the most applicable orientation of financial coverage. Our selections on rates of interest can be primarily based on the prospects of inflation, on the dynamics of cross -country inflation and the energy of the transmission of financial coverage. We don’t commit ourselves prematurely on a sure course of the charges ».

Europe stability pillar

“This year – he continued – was marked by a profound economic and geopolitical uncertainty globally. While we find ourselves navigating in a world increasingly characterized by fragmentation, uncertainty and conflicts, Europe must reaffirm its role as a pillar of economic and political stability. If we want to promote innovation and strengthen resilience, a deeper European integration – in particular in financial markets and payment systems – is not simply a political aspiration, but a strategic necessity “.

Accelerating in the direction of digital euro is a precedence

“Accelerating progress towards a digital euro is a strategic priority,” stated the ECB president. «In addition to coping with a number of the dangers positioned by Stablecoin, a digital euro would contribute to safeguarding the European monetary and financial system primarily based on banks. Not solely wouldn’t it strengthen the strategic autonomy of Europe, however would additionally assure a European system of revolutionary and resilient retail funds ».

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