ECB's Lagarde says we have not yet precisely defined the notion of “some time”, but I have been very clear that this could mean a period of only a few weeks. After the first rate hike, the normalisation process will be gradual.
- Inflation projections are increasingly pointing towards inflation being on target over the medium term.
- Judging by the incoming data, my expectation is that the (asset purchase programme) should be concluded early in the third quarter.
- It looks increasingly unlikely that the disinflationary dynamics of the past decade will return. As a result, it is appropriate for policy to return to more normal settings
via ECB
Analysis details (09:09)
- Today's speech from Lagarde has a modest hawkish tilt compared to her previous language from the April press conference; albeit, this seemingly brings her in step with the majority of ECB speakers we have seen recently, in alluding to a July lift-off.
- Explicitly, Lagarde on the "some time" guidance has said this could mean a period of only weeks. Compared to her prior commentary from the April ECB meeting that this could mean "weeks" or "several months".
- Reminder, "some time" refers to the linkage between the end of the APP and the commencement of rate hikes.
11 May 2022 - 09:00- Important- Source: ECB
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