Economics
Lagarde Says ECB Has Learned From History, Won’t Tighten Early
- Central bank revised interest-rate guidance to pledge support
- Change follows conclusion of ECB’s lengthy strategy review
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Christine Lagarde promised that the European Central Bank has learned from the errors of past crises and won’t derail the current economic recovery by withdrawing emergency support too early.
The ECB president spoke Thursday as the central bank put into action the new monetary policy strategy it hammered out over the past 18 months. It revised guidance on interest rates, tying policy shifts more tightly to hitting its new 2% inflation goal, and said it won’t necessarily react immediately if price growth exceeds that target for a “transitory” period.