ECB Lagarde: ECB strategy review on agenda

The President of the ECB Christine Lagarde said in the press conference on Thursday that the Central Bank has more info about its strategy review on late September, 23rd.

According to her, the ECB has noticed the US Federal Reserve strategy review to integrate more the employment in its monetary policy. Lagarde said that the ECB’s focus is on price stability, but how the rising unemployment will have impact on the future decisions will be seen.

The ECB estimates, that the GDP will fall 8 % this year, and increase 5 % in 2021 and increase 3,2 % in 2022 in the euro-area. According to the bank, the cumulative decline was 15,1 % in the first half of 2020.

-The recovery is broadly in line with the estimates published in June. However, economic activity remains well below pre-pandemic levels. Recovery is asymmetric across sectors and countries and remains subject to elevated uncertainty, the ECB said.

Inflation is expected to turn positive in the early 2021. In August, the inflation turned negative 0,2 % after being 0,4 % in July and 0,3 % in June.

ECB Lagarde: Climate Change is a financial risk

The President of the European Central Bank, Mrs Christine Lagarde said in the banks press conference that the Climate Change is a financial risk and that the Central Bank will also review its tools and guidelines for climate risk management in its monetary strategy review during this year.

-Climate Change is everybody’s responsibility, she said in Frankfurt on Thursday.

According to her, the Central Bank started its year long strategy review regarding the monetary policy, inflation target setting, growth measures and communications. Climate Change is a big issue, related also the ESG criterias (environmental, social and governance) and according to Mrs Lagarde, the Central Bank will have to measure the monetary policy portfolio also for this risk assessment and forecast in the future.