Christine Lagarde, President of the BCE, recognizes that eurozone inflation rates are declining

The President of Central European Bank, Christine Lagardereconcoció el jueves que la Eurozone inflation it is more elaborate than the preview and that the giants are inclined towards the other, but it continues to predict that it will decrease this year.

Declarations have been made despite the fact that the BCE mantuvo its monetary policy without change, as the market hopes, Lagarde says that the authorities of Consejo de Gobierno does not like to take new media, although it is also possible not to repeat your previous comment from a bag increase this year was very probable.

“It is probable that inflation will increase over time during this period, as it decreases in the course of this year (…). particularly in the short plaza “, sostuvo.

“The situation has certainly changed,” he added.

Lagarde dijo a periodistas que si bien habia una “Preocupación unánime” entre los membros del BCE Government Council regarding inflation, también estaban decididos a no apresurarse a sacar conclusions hasta hubiera más information available.

“We will observe the sequence that we agree on and we will be gradual in any determination we make,” he said.

Mentras that its global pairs like the Federal Reserve of the United States y el Banco de Inglaterra renegotiating monetary policy, the BCE continues without a turn to adjust, maintains on the truck to propose a large estimate.

Lagarde says that the inflation rate is higher than the 5.1% inflation hope, mainly due to the direct and indirect impact of an increase in the energy costsy los more high prices of foods también pesaron debido a los mayors cost of transport and fertilizers.

Do you know that the impact of the Covid-19 pandemic if you want to be less serious with each one, I understand that the national media will contain the virus before it can freeze the activity.

Do not refer explicitly to the tensions between Russia y Occident by Ukrainedijo que “las geopoliticas se ciernen sober Europa”, lo que también podría affect las perspectives de crecimiento.

The Central Bank of the 19 countries that the euro has been using has argued for a long time that inflation will decrease without its intervention and, therefore, it will close its 2% target until the end of the year, before which it withdraws now counterproductive series.

Pero the inversors and a series of authorities of monetary policy he began to question this narrative, especially because the BCE has estimated various times the current level of inflation, which it is obliged to revise its prognostications repeatedly.

BCE markets have been projected to be worth 28 basis points this year, with the first move taken in July, despite the bank’s insistence that any move in 2022 is likely.

The problem is that inflation is projected to increase by 2% of its target in 2023 and 2024, while including a slight increase in the inflation targeting scale to increase the accuracy of the target, reducing the need for estimates.