ECB President Lagarde (Q&A), on the balance of risks, says ECB statement no longer refers to the balance of risks; says that guidance what useful during COVID; now ECB lists upside and downside risk components

Lagarde's comments signal a shift in the ECB's communication strategy, moving from a general reference to balance in risks to a more nuanced distinction between upside and downside risks.

Newsquawk StaffPublished On the live feed at 11 more headlines followed before this page went public
Newsquawk headlinesUTC

ECB President Lagarde (Q&A) says some inflation upside is a result of base effects from last year's energy costs; inflation is gradually moving back to target, and ECB sees it at target in the medium-term

OpenAI introduces OpenAI Frontier

ECB President Lagarde (Q&A), on the balance of risks, says ECB statement no longer refers to the balance of risks; says that guidance what useful during COVID; now ECB lists upside and downside risk components

BoE Decision Maker Panel (Jan):

US President Trump reiterates getting along fantastically with Venezuela

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Free. No signup, no card.
  • There is a debate that goes on in the GC regarding the risks, their range and their extent.
  • ECB is not seeing a reduction in the range of risks, but equally, sentiment around the table is that it is broadly balanced.
  • Asked if ECB policy is still in a good place, says we are, and inflation is in a good place. 
  • Says good place is a factor of whether GC is convinced it will reach medium-term target; ECB can not be hostage to any one data point
Context

This reflects a cautious optimism about inflation and suggests that the ECB feels confident about its policy stance, even amid ongoing debates within the Governing Council. Market participants may interpret this as a tighter grip on inflation expectations, which could influence rates and the euro's trajectory.

Related headlines

The whole workspace, free to try.

Try it free