She is out with a staunch defence over current ECB policies
In speaking to the ECON committee today, Lagarde says that:
"I wouldn't draw the conclusion that our current monetary policy has actually been the main factor in the rise of housing prices or declining profitability of some banks. It may have contributed, but I don't think it's a given conclusion."
Although, she also balanced out that argument by saying that ECB's easing policies are also not to be fully credited for the stronger labour market performance in the euro area:
"We keep referring to the creation of jobs, and I'm not going to use the 11 million jobs created since 2013 because monetary policy was one of the several contributing factors - but clearly, it can only claim a portion of the job creations."
In any case she says that she would not compare the situation in the Eurozone to that of Japan. But with every passing day, I reckon she is losing that argument bit by bit.
