Lagarde Q&A: Our views are largely the same as in March
Lagarde answers questions after the ECB decision on April 22, 2021
- Vaccination pace is improving but we're also seeing more pressure on economic and health sector from virus
- We're also seeing risks from variants
- We still have this overall environment of uncertainty and that's very much reflected in the consumer
- We have a service sector that seems to be bottoming out
- We still see near-term risks tilted to the downside and medium term risks much more balanced, the same as March
- We did not discuss any phasing out of PEPP
- PEPP purchases are data dependent, it depends on financing conditions and the inflation outlook
- Obviously we look at what other central banks do (in response to BOC question). Each country has its own variables "I'm referring here to fiscal policy"
- I don't know what the normal pace of PEPP is
The euro climbed to a session high at 1.2067 as she was taking questions. There wasn't anything in there to spark a spike, I suspect some EUR/GBP selling at work.