ECB President Lagarde: 'Our decisions are data-dependent'

European Central Bank President Christine Lagarde attended a conference held in Frankfurt. During the conference, Lagarde spoke about the decisions the Central Bank might take. 

In her speech, Lagarde reiterated her stance, stating, “We will have a little more data by April and a lot more by June regarding our policy decisions,” emphasizing that the path for monetary policy remains uncertain.

"OUR DECISIONS ARE DATA-DEPENDENT"

“Our decisions are data-dependent and will change from meeting to meeting; we will respond as new information becomes available. This means that even after the first interest rate cut, we cannot pre-commit to a specific interest rate path,” she stated.

Some officials, such as Bank of Greece Governor Yannis Stournaras, have suggested that a series of moves could be made this year in line with investor expectations. Other members have spoken more vaguely. ECB Vice President Luis de Guindos said in a statement on Tuesday that the ECB would need to adjust its policy “based on the data seen.”

Lagarde stated that figures regarding wages, productivity, and corporate profit margins in the coming months will determine when interest rates can be lowered.

Lagarde said, “If these data show a sufficient degree of alignment between the underlying path of inflation and our projections, and assuming that transmission remains strong, we will be able to move to the reversal phase of our policy cycle and make policy less restrictive,” she said.