The monetary policy of the European Central Bank (ECB) is not put on automatic pilot during the evaluation of the bank’s strategy. ECB President Christine Lagarde made that promise. According to the Frenchwoman, the central bank continues to follow the economic situation closely in its usual cycle of one interest rate decision every six weeks.
The ECB officially kicked off a large-scale evaluation of its monetary policy on Thursday. According to Lagarde, that research will be completed at the end of this year. Experts are concerned that the ECB will not change its policy during that period. There is also the fear that, in the event of any necessary intervention, it is not clear which steps should be taken and according to which protocol.
Lagarde denied that the hands of the bank are now tied.
“To the people who say that the policy will remain unchanged these twelve months, I want them to pay attention. The situation may change,” the head of the central bank warned.
The ECB decided on Thursday to keep interest rates at current low levels. In general, economists do not expect an interest rate rise until 2022.