Economics
Lagarde Has Euro-Fighting Options From Rhetoric to Rate Cuts
- Talking down the exchange rate is the first line of defense
- Policy makers start a two-day virtual meeting on Wednesday
Sept. 3: ECB Should Stay Put, Says De Longis
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The euro’s rally to a two-year high is making European Central Bank officials nervous, and putting investors and economists on the lookout for some kind of intervention as soon as Thursday’s policy meeting.
The currency’s 10% jump since coronavirus lockdowns started in March makes ECB President Christine Lagarde’s job harder by putting downward pressure on inflation. Combined with signs that the economic recovery is slowing, it boosts the case for more monetary stimulus.