The European Central Bank’s new president Christine Lagarde presided over the first monetary policy meeting in her own style.
The press conference that took place in Frankfurt was the first policy meeting presided by Lagarde. The previous president was Mario Draghi. Lagarde governed the meeting in her own freestyle. She is the first woman president of the ECB.
Addressing the press as head of one of the most powerful financial institution, she has approved for further support to many member countries.
Lagarde has said that a strategic review will be made on monetary policies which would start from Jan 2020. Climate change will also be addressed and strategies will not only be outlined but will also be implemented, she said.
Her attitude in the monetary policy will not be dovish or hawkish but will be that of an “owl”, as it stands for wisdom.
Key interest rates were kept unchanged by President Christine Lagarde. The Governing Council has agreed to keep the deposit rates at -0.5 percent though it is at historic low levels. The lending rates will remain at 0.25 percent said the ECB.
Mario Draghi who was the previous president had brought in a huge stimulus package by cutting the deposit rates to stimulate the sluggish economy.
Quantitative Easing will continue in the same vein for as long as necessary, states the president. While speaking about digital currencies, she said that central bankers should not forget the digital payment system that is already in existence.
The annual GDP forecast announced for the euro area is at 1.2 percent for this year, at 1.1 percent for the next year 2020 and at 1.4 percent in the next two years, 2021 and 2022.
There are many problems that the eurozone faces currently. Geopolitical factors continue to harm the economies. Further, there is an increase in protectionist policies and the emerging markets are sliding, which are hampering growth, says Lagarde.