Lagarde Q&A: FX appreciation is a drag on inflation
Comments from the ECB leader in the press conference
- Cites vaccines and Brexit deal as positives
- Inflation to turn positive on German VAT cut
- ECB aims to preserve favorable financing conditions
- "Pandemic period" is until "at least March 2022"
- We will be present in the market until at least March 2022, at least
- "I want to downplay any expectations that the digital euro is about to come"
- We will always have banknotes even after the digital euro
- Joint borrowing is an "extraordinary breakthrough" and it needs to be rolled out
- We are monitoring "very carefully" exchange rates
Lagarde really wanted to underscore how long they'd be buying bonds and that has reversed the latest leg of euro gains.