Lagarde: Uncertainty is huge

• We are not precommiting to a path
• We will probably be more data dependent
• Some governors indicate what they think but those are not collective views, I assure you
• From one day to the other, our projections change dramatically
• Risks are all over the place

These comments were worth hearing because Lagarde underscored the uncertainty and the variability of policy.

• Decision was a consensus and no one opposed
• Holzmann abstained
• Won’t be changing policy stance based on short term market moves
• Limited spread variation despite massive yield moves
• Our staff isn’t in a position to yet evaluate how German policies might impact growth and inflation
• These things need to go through parliament and be implemented. It would boost growth but we will see
• We will reach inflation target in 2026, the delay is due to energy prices

This article was written by Adam Button at www.forexlive.com.